Condensed Statement of Financial Position for Play and Station Corporation at December 31, 2016 are as follows: Play 585,000 2,565,000 3,150,000 Station Current Assets 270,000 1,980,000 2,250,000 Noncurrent Assets Total Assets 225,000 2,250,000 225,000 450,000 3,150,000 On January 2, 2017, Play issues 120,000 shares of its stock with a market value of 30/share for the net assets of Station Corporation. Because of the acquisition, Station Company was dissolved. The book values reflect fair values except a noncurrent asset of Play, which has a fair value of 1,800,000, and the current assets of Station, which have a net realizable value of 450,000. Play pays 67,500 for costs of registering and issuing securities issued and 112,500 for other acquisition costs Current Liabilities Ordinary share, 30 Share Premium Retained Earnings Total Equities 270,000 900,000 630,000 450,000 2,250,000 related to combination.

Condensed Statement of Financial Position for Play and Station Corporation at December 31, 2016 are as follows: Play 585,000 2,565,000 3,150,000 Station Current Assets 270,000 1,980,000 2,250,000 Noncurrent Assets Total Assets 225,000 2,250,000 225,000 450,000 3,150,000 On January 2, 2017, Play issues 120,000 shares of its stock with a market value of 30/share for the net assets of Station Corporation. Because of the acquisition, Station Company was dissolved. The book values reflect fair values except a noncurrent asset of Play, which has a fair value of 1,800,000, and the current assets of Station, which have a net realizable value of 450,000. Play pays 67,500 for costs of registering and issuing securities issued and 112,500 for other acquisition costs Current Liabilities Ordinary share, 30 Share Premium Retained Earnings Total Equities 270,000 900,000 630,000 450,000 2,250,000 related to combination.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Statement I: The equity securities issued as part of the consideration transferred shall be measured at the fair value of the shares at the date of acquisition.Statement II: The goodwill in the books of the acquiree shall be measured at its fair value at the date of acquisition. a. True, False b. False, True c. True, True d. False, False
4. **In which section of the balance sheet would you find "goodwill"?** A) Current Assets B) Non-current Assets C) Current Liabilities D) Long-term Liabilities
11. Which type of financial assets are purchased only with the intent of selling them in the near future? DAFVTPL financial assets ⒸBFVTOCI Financial assets C. Amortized Cost financial assets OD. Investment accounted for using the equity method
Which of the following results in an increase in the Equity in the Investee Income acct. when applying the equity method? Amortizations of purchase price over book value on date of purchase Amortization since date of purchase of purchase price over book value on date of purchase Sale of portion of the investment at a gain to the investor Investors share of gross profit from intra-entity inventory sale for the prior year Sale of a portion of the investment at a loss
what is the asset turnover return on total assets return on stockholdres' equity
Explain the nature of lump-sum purchases including the factor(s) to be considered and the process/steps to properly account for and reflect the newly acquired assets on the balance sheet.
When investments measured at amortized cost are reclassified to FVOCI, the gain or loss recognized in profit or loss is equal to * a. zero b. the amount realized to date c. the amount from beginning of period to reclassification date d.the amount from acquisition date to reclassification date e.none of the above
Question 1. Which of the following represents the fundamental accounting oquation used in a business" Balance Sheel? (A) Assets + Liabilitles = Equity (B) Assets = Equity - Liabilities (C) Assets- Liabilities = (D) Assets + Liabilities = Equity (E) None of the above (F) Choices (B) and (C) are correct
which of the following are fixed assets? Financial assets at fair value through profit or loss Interests in and advances to joint ventures, co-venturers and associates Property, plant and equipment Right-of-use assets Investment properties Trademarks, goodwill and other intangible assets Operating lease receivables Finance lease receivables
Explain the adjustments made in the equity method when the fair value of the net assets underlying an investment exceeds their book value at acquisition.
How is an available-for-sale investment recorded on the financial statements? At fair market value on the balance sheet As an expense on the income statement At cost plus any acquisition costs on the balance sheet