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
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
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 25E
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