Assets Liabilities and Equity $ 150,000 180,000 50,000 600,000 (150,000) 40,000 $ 870,000 Cash and receivables Current liabilities . Inventory Land. . Building . Accumulated depreciation 9% Bonds payable Common stock ($5 par) . Paid-in capital in excess of par Retained earnings $120,000 300,000 100,000 200,000 150,000 Goodwill Total assets. Total liabilities and equity $870,000 ...
Caswell Company is contemplating the purchase of LaBelle Company as of January 1, 2016. LaBelle Company has provided the following current
The following information exists relative to balance sheet accounts:
a. The inventory has a fair value of $200,000.
b. The land is appraised at $100,000 and the building at $600,000.
c. The 9% bonds payable have five years to maturity and pay annual interest each December 31. The current interest rate for similar bonds is 8% per year.
d. It is likely that there will be a payment for
2011 $120,000
2012 140,000
2013 150,000
2014 200,000 (includes $40,000 extraordinary gain)
2015 180,000
1. Provide an estimate of fair
2. Using the values derived in part (1), record the acquisition on the Caswell books.
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