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17 & Exit Submit The financial statement amounts for the Atwood Company and the Franz Company as of December 31, 2024, are presented below. Also included are the fair values for Franz Company's net assets (all numbers are in thousands). 02:17:14 Cash Atwood Book Franz Book Franz Fair Value 12/31/2024 Value 12/31/2024 Value 12/31/2024 $ 870 $ 240 $ 240 Receivables 660 600 600 Inventory 1,230 420 580 Land 1,800 260 250 Buildings (net) 1,800 540 650 Equipment (net) 660 380 400 Accounts payable (570) (240) (240) Accrued expenses Long-term liabilities (270) (60) (60) (2,700) (1,020) (1,120) Common stock ($20 par) (1,980) Common stock ($5 par) (420) Additional paid-in capital (210) (180) Retained earnings 1/1/24 (1,170) (480) Revenues (2,880) (660) Expenses 2,760 620 Note: Parenthesis indicate a credit balance Assume an acquisition business combination took place at December 31, 2024. Atwood issued 50 shares of its common stock with a fair value of $35 per share for all of the outstanding common shares of Franz. Stock issuance costs of $15 (in thousands) and direct costs of $10 (in thousands) were paid. Compute consolidated goodwill at the date of the acquisition

17 & Exit Submit The financial statement amounts for the Atwood Company and the Franz Company as of December 31, 2024, are presented below. Also included are the fair values for Franz Company's net assets (all numbers are in thousands). 02:17:14 Cash Atwood Book Franz Book Franz Fair Value 12/31/2024 Value 12/31/2024 Value 12/31/2024 $ 870 $ 240 $ 240 Receivables 660 600 600 Inventory 1,230 420 580 Land 1,800 260 250 Buildings (net) 1,800 540 650 Equipment (net) 660 380 400 Accounts payable (570) (240) (240) Accrued expenses Long-term liabilities (270) (60) (60) (2,700) (1,020) (1,120) Common stock ($20 par) (1,980) Common stock ($5 par) (420) Additional paid-in capital (210) (180) Retained earnings 1/1/24 (1,170) (480) Revenues (2,880) (660) Expenses 2,760 620 Note: Parenthesis indicate a credit balance Assume an acquisition business combination took place at December 31, 2024. Atwood issued 50 shares of its common stock with a fair value of $35 per share for all of the outstanding common shares of Franz. Stock issuance costs of $15 (in thousands) and direct costs of $10 (in thousands) were paid. Compute consolidated goodwill at the date of the acquisition

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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17 & Exit Submit The financial statement amounts for the Atwood Company and the Franz Company as of December 31, 2024, are presented below. Also included are the fair values for Franz Company's net assets (all numbers are in thousands). 02:17:14 Cash Atwood Book Franz Book Franz Fair Value 12/31/2024 Value 12/31/2024 Value 12/31/2024 $ 870 $ 240 $ 240 Receivables 660 600 600 Inventory 1,230 420 580 Land 1,800 260 250 Buildings (net) 1,800 540 650 Equipment (net) 660 380 400 Accounts payable (570) (240) (240) Accrued expenses Long-term liabilities (270) (60) (60) (2,700) (1,020) (1,120) Common stock ($20 par) (1,980) Common stock ($5 par) (420) Additional paid-in capital (210) (180) Retained earnings 1/1/24 (1,170) (480) Revenues (2,880) (660) Expenses 2,760 620 Note: Parenthesis indicate a credit balance Assume an acquisition business combination took place at December 31, 2024. Atwood issued 50 shares of its common stock with a fair value of $35 per share for all of the outstanding common shares of Franz. Stock issuance costs of $15 (in thousands) and direct costs of $10 (in thousands) were paid. Compute consolidated goodwill at the date of the acquisition
Transcribed Image Text:17 & Exit Submit The financial statement amounts for the Atwood Company and the Franz Company as of December 31, 2024, are presented below. Also included are the fair values for Franz Company's net assets (all numbers are in thousands). 02:17:14 Cash Atwood Book Franz Book Franz Fair Value 12/31/2024 Value 12/31/2024 Value 12/31/2024 $ 870 $ 240 $ 240 Receivables 660 600 600 Inventory 1,230 420 580 Land 1,800 260 250 Buildings (net) 1,800 540 650 Equipment (net) 660 380 400 Accounts payable (570) (240) (240) Accrued expenses Long-term liabilities (270) (60) (60) (2,700) (1,020) (1,120) Common stock ($20 par) (1,980) Common stock ($5 par) (420) Additional paid-in capital (210) (180) Retained earnings 1/1/24 (1,170) (480) Revenues (2,880) (660) Expenses 2,760 620 Note: Parenthesis indicate a credit balance Assume an acquisition business combination took place at December 31, 2024. Atwood issued 50 shares of its common stock with a fair value of $35 per share for all of the outstanding common shares of Franz. Stock issuance costs of $15 (in thousands) and direct costs of $10 (in thousands) were paid. Compute consolidated goodwill at the date of the acquisition
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