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

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