52) Telecom Inc has decided to purchase the shares of Intron Inc. for $300,000 in cash on July 1, 2022. On the date, the balance sheets of each of these companies were as follows: Intron Inc Telecom Inc Cash and short-term securities Inventory Plant and equipment (net) Total assets Current liabilities Bonds payable Common shares Retained earnings Total liabilities and equity $920,000 150,000 330,000 $1,400,000 $420,000 700,000 180,000 100,000 $1,400,000 On that date, the fair values of Intron's assets and liabilities were as follows: Cash and short-term securities Inventory Plant and equipment (net) Current liabilities Bonds payable $200,000 20,000 180,000 $400,000 $90,000 200,000 60,000 50,000 $400,000 $200,000 $15,000 $400,000 $90,000 $210,000
52) Telecom Inc has decided to purchase the shares of Intron Inc. for $300,000 in cash on July 1, 2022. On the date, the balance sheets of each of these companies were as follows: Intron Inc Telecom Inc Cash and short-term securities Inventory Plant and equipment (net) Total assets Current liabilities Bonds payable Common shares Retained earnings Total liabilities and equity $920,000 150,000 330,000 $1,400,000 $420,000 700,000 180,000 100,000 $1,400,000 On that date, the fair values of Intron's assets and liabilities were as follows: Cash and short-term securities Inventory Plant and equipment (net) Current liabilities Bonds payable $200,000 20,000 180,000 $400,000 $90,000 200,000 60,000 50,000 $400,000 $200,000 $15,000 $400,000 $90,000 $210,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:52) Telecom Inc has decided to purchase the shares of Intron Inc. for $300,000 in cash on
July 1, 2022. On the date, the balance sheets of each of these companies were as follows:
Telecom Inc
Intron Inc
Cash and short-term securities
Inventory
Plant and equipment (net)
Total assets
Current liabilities
Bonds payable
Common shares
Retained earnings
Total liabilities and equity
$920,000
150,000
330,000
$1,400,000
$420,000
700,000
180,000
100,000
$1,400,000
On that date, the fair values of Intron's assets and liabilities were as follows:
Cash and short-term securities
Inventory
Plant and equipment (net)
Current liabilities
Bonds payable
$200,000
20,000
180,000
$400,000
$90,000
200,000
60,000
50,000
$400,000
$200,000
$15,000
$400,000
$90,000
$210,000
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