ader Company purchased 100 percent of the common shares of Skywalker Company by issuing shares of common stock valued at $900,000. Selected accounts from Vade t the date of combination are as follows: $700,000 1,400,000 840,000 2,000,000 nventory Building and Equipment (net) Common Stock Retained Earnings elected accounts from the balance sheet of Skywalker at acquisition are as follows: nventory Building and Equipment (net) Common Stock Additional Paid-In Capital $200,000 900,000 450,000 450,000 Retained Earnings (60,000) On the date of purchase, Skywalker's inventory and buildings and equipment had fair values of $255,000 and $870,000, respectively. ased on the information given above, the amount to be reported for goodwill in the consolidated balance sheet immediately after the combination is: 1.$0 2.$35.000
ader Company purchased 100 percent of the common shares of Skywalker Company by issuing shares of common stock valued at $900,000. Selected accounts from Vade t the date of combination are as follows: $700,000 1,400,000 840,000 2,000,000 nventory Building and Equipment (net) Common Stock Retained Earnings elected accounts from the balance sheet of Skywalker at acquisition are as follows: nventory Building and Equipment (net) Common Stock Additional Paid-In Capital $200,000 900,000 450,000 450,000 Retained Earnings (60,000) On the date of purchase, Skywalker's inventory and buildings and equipment had fair values of $255,000 and $870,000, respectively. ased on the information given above, the amount to be reported for goodwill in the consolidated balance sheet immediately after the combination is: 1.$0 2.$35.000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Vader Company purchased 100 percent of the common shares of Skywalker Company by issuing shares of common stock valued at $900,000. Selected accounts from Vader's balance sheet
at the date of combination are as follows:
$700,000
1,400,000
Inventory
Building and Equipment (net)
Common Stock
Retained Earnings
Selected accounts from the balance sheet of Skywalker at acquisition are as follows:
Inventory
Building and Equipment (net)
Common Stock
Additional Paid-In Capital
450,000
Retained Earnings
(60,000)
On the date of purchase, Skywalker's inventory and buildings and equipment had fair values of $255,000 and $870,000, respectively.
Based on the information given above, the amount to be reported for goodwill in the consolidated balance sheet immediately after the combination is:
1.$0
O 2. $35,000
3. $60,000
○ 4. $25,000
O 5. None of the above
840,000
2,000,000
$200,000
900,000
450,000
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