ABC Corp. acquired all the assets and liabilities of XYZ Corporation by issuing shares of its common stock. On January 1, 2020, partial balance sheet data for the companies prior to the business combination and immediately following the combination is provided. ABC Corp. XYZ Corp. Combination Cash 65,000 25,000 90,000 Accounts receivable 72,000 20,000 94,000 Inventory 33,000 45,000 88,000 PPE (net) 400,000 150,000 650,000 Goodwill ? Total Assets 570,000 240,000 ? Accounts payable 50,000 25,000 75,000 Bonds payable 250,000 100,000 350,000 Common stock, P2 par 100,000 25,000 160,000 Share Premium 65,000 20,000 245,000 Retained earnings 105,000 70,000 ? Total Liab and Equity 570,000 240,000 ? What is the fair value of the net assets held by XYZ Corp at the date of combination? Group of answer choices 115,000 270,000 497,000 227,000
ABC Corp. acquired all the assets and liabilities of XYZ Corporation by issuing shares of its common stock. On January 1, 2020, partial
|
|
ABC Corp. |
XYZ Corp. |
Combination |
|
Cash |
65,000 |
25,000 |
90,000 |
|
|
72,000 |
20,000 |
94,000 |
|
Inventory |
33,000 |
45,000 |
88,000 |
|
PPE (net) |
400,000 |
150,000 |
650,000 |
|
|
|
|
? |
|
Total Assets |
570,000 |
240,000 |
? |
|
|
|
|
|
|
Accounts payable |
50,000 |
25,000 |
75,000 |
|
Bonds payable |
250,000 |
100,000 |
350,000 |
|
Common stock, P2 par |
100,000 |
25,000 |
160,000 |
|
Share Premium |
65,000 |
20,000 |
245,000 |
|
|
105,000 |
70,000 |
? |
|
Total Liab and Equity |
570,000 |
240,000 |
? |
What is the fair value of the net assets held by XYZ Corp at the date of combination?
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