ABC purchased 100% of the shares of XYZ for $4,000,000. Total Assets Total Liabilities Shareholder's Equity Total Liabilities and Shareholder's Equity XYZ $4,500,000 $1,000,000 $3,500,000 $4,500,000 a) It is known that the fair value of XYZ total assets is $4,800,000. What is the fair value of XYZ's net assets? What is the value of goodwill generated as a result of the acquisition? f 国语 own. b) Using push-down accounting (i.e. XYZ's financial statements should reflect the actual purchase price), provide the consolidated balance sheet of the post- merger company.

ABC purchased 100% of the shares of XYZ for $4,000,000. Total Assets Total Liabilities Shareholder's Equity Total Liabilities and Shareholder's Equity XYZ $4,500,000 $1,000,000 $3,500,000 $4,500,000 a) It is known that the fair value of XYZ total assets is $4,800,000. What is the fair value of XYZ's net assets? What is the value of goodwill generated as a result of the acquisition? f 国语 own. b) Using push-down accounting (i.e. XYZ's financial statements should reflect the actual purchase price), provide the consolidated balance sheet of the post- merger company.

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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Question

ABC purchased 100% of the shares of XYZ for $4,000,000.
Total Assets
Total Liabilities
Shareholder's Equity
Total Liabilities and Shareholder's Equity
XYZ
$4,500,000
$1,000,000
$3,500,000
$4,500,000
a) It is known that the fair value of XYZ total assets is $4,800,000. What is the
fair value of XYZ's net assets? What is the value of goodwill generated as a
result of the acquisition?
国语
b) Using push-down accounting (i.e. XYZ's financial statements should reflect the
actual purchase price), provide the consolidated balance sheet of the post-
merger company.

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