Box Company (the transferor company) and Cox Company (the transferee company) amalgamatein an exchange of stock to form Cox & Box Company. The pre-amalgamation balance sheetsof Cox Company and Box Company are as follows:1.Вох СompanyСох Соmpany* in million)(® in million)Fixed assets2510.0Current assets207.5Total assetsShare capital (? 10 face value)Reserves and surplusDebt4517.52051010152.54517.5For each share held in Box Company, two shares of Cox Company were given in exchange(face value: 710, share premium: 720) as the market price of Cox's equity shares is 730. Thefair market value of the fixed assets and current assets of Box Company was assessed at ?20million and 710 million, respectively. Prepare the post-amalgamation balance sheet of Cox &Box Company under the 'pooling' and 'purchase' methods.000

An amalgamation occurs when two or more corporations merge to form a new company. Because neither of…

Box Company (the transferor company) and Cox Company (the transferee company) amalgamate in an exchange of stock to form Cox & Box Company. The pre-amalgamation balance sheets of Cox Company and Box Company are as follows: Сох Company (* in million) Вох Сompany (* in million) Fixed assets 25 10.0 Current assets 20 7.5 Total assets 45 17.5 Share capital (? 10 face value) 20 5 Reserves and surplus 10 10 Debt 15 2.5 45 17.5 For each share held in Box Company, two shares of Cox Company were given in exchange (face value: 710, share premium: 720) as the market price of Cox's equity shares is 730. The fair market value of the fixed assets and current assets of Box Company was assessed at 720 million and 710 million, respectively. Prepare the post-amalgamation balance sheet of Cox & Box Company under the 'pooling' and 'purchase' methods. 000

Box Company (the transferor company) and Cox Company (the transferee company) amalgamate in an exchange of stock to form Cox & Box Company. The pre-amalgamation balance sheets of Cox Company and Box Company are as follows: Сох Company (* in million) Вох Сompany (* in million) Fixed assets 25 10.0 Current assets 20 7.5 Total assets 45 17.5 Share capital (? 10 face value) 20 5 Reserves and surplus 10 10 Debt 15 2.5 45 17.5 For each share held in Box Company, two shares of Cox Company were given in exchange (face value: 710, share premium: 720) as the market price of Cox's equity shares is 730. The fair market value of the fixed assets and current assets of Box Company was assessed at 720 million and 710 million, respectively. Prepare the post-amalgamation balance sheet of Cox & Box Company under the 'pooling' and 'purchase' methods. 000

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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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

Box Company (the transferor company) and Cox Company (the transferee company) amalgamate
in an exchange of stock to form Cox & Box Company. The pre-amalgamation balance sheets
of Cox Company and Box Company are as follows:
1.
Вох Сompany
Сох Соmpany
* in million)
(® in million)
Fixed assets
25
10.0
Current assets
20
7.5
Total assets
Share capital (? 10 face value)
Reserves and surplus
Debt
45
17.5
20
5
10
10
15
2.5
45
17.5
For each share held in Box Company, two shares of Cox Company were given in exchange
(face value: 710, share premium: 720) as the market price of Cox's equity shares is 730. The
fair market value of the fixed assets and current assets of Box Company was assessed at ?20
million and 710 million, respectively. Prepare the post-amalgamation balance sheet of Cox &
Box Company under the 'pooling' and 'purchase' methods.
000

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