Beaver Inc. and Victoria Inc. agreed to combine as of January 1, 2023. The book value and fair value of Victoria's accounts on that date (prior to creating the combination) follow, along with the book value of Beaver's accounts: Current assets Building and equipment (net) Liabilities Common Stock Additional paid-in capital Retained earnings, 1/1/2023 O $557,000. O $600,000. O $548,000. Beaver Book Value O $60,000. 880,000 Victoria Book Value $400,000 $250,000 $300,000 650,000 540,000 690,000 Victoria Fair Value 430,000 430,000 360,000 80,000 20,000 40,000 Assume that Beaver issued 12,000 shares of common stock with a $5 par value and a $50 fair value to obtain all of Victoria's outstanding stock. In addition, Beaver paid legal costs of $9,000 in connection with the acquisition and $3,000 in stock issue costs, which is not yet reflected in the information above. * Immediately after the transactions of business combination, what is the balance of Additional Paid-in Capital reported on Beaver's book? 250,000 240,000

Cornerstones of Financial Accounting
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ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
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Plz answer fast no plagiarism please show work and what is correct option and incorrect option and why?

Beaver Inc. and Victoria Inc. agreed to combine as of January 1, 2023. The book value and fair value of Victoria's accounts on that date (prior to creating the combination) follow,
along with the book value of Beaver's accounts:
Current assets
Building and equipment (net)
Liabilities
Common Stock
Additional paid-in capital
Retained earnings, 1/1/2023
O $557,000.
O $600,000.
O $548,000.
Beaver
Book
Value
O $60,000.
Victoria
Book
Value
$400,000 $250,000 $300,000
.
880,000 540,000 690,000
650,000 430,000
360,000 80,000
250,000
20,000 40,000
Victoria
Fair Value
240,000
Assume that Beaver issued 12,000 shares of common stock with a $5 par value and a $50 fair value to obtain all of Victoria's outstanding stock. In addition, Beaver paid legal costs
of $9,000 in connection with the acquisition and $3,000 in stock issue costs, which is not yet reflected in the information above.
Immediately after the transactions of business combination, what is the balance of Additional Paid-in Capital reported on Beaver's book?
430,000
Transcribed Image Text:Beaver Inc. and Victoria Inc. agreed to combine as of January 1, 2023. The book value and fair value of Victoria's accounts on that date (prior to creating the combination) follow, along with the book value of Beaver's accounts: Current assets Building and equipment (net) Liabilities Common Stock Additional paid-in capital Retained earnings, 1/1/2023 O $557,000. O $600,000. O $548,000. Beaver Book Value O $60,000. Victoria Book Value $400,000 $250,000 $300,000 . 880,000 540,000 690,000 650,000 430,000 360,000 80,000 250,000 20,000 40,000 Victoria Fair Value 240,000 Assume that Beaver issued 12,000 shares of common stock with a $5 par value and a $50 fair value to obtain all of Victoria's outstanding stock. In addition, Beaver paid legal costs of $9,000 in connection with the acquisition and $3,000 in stock issue costs, which is not yet reflected in the information above. Immediately after the transactions of business combination, what is the balance of Additional Paid-in Capital reported on Beaver's book? 430,000
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