Multiple Choice a. $900. b. $1,400. c. $1,900. d. $2,400. e. $2,600. FairValue$1,2001,3501,300Long-term liabilities 1,750BuildingsEquipmentLandAny excess of consideration transferred over fair value of net assets acquired is considered goodwill with an indefinite life.Compute the consideration transferred in excess of book value acquired at January 1, 2020.Multiple Choice$900.$1,400.$1,900.< Prev9 of 25Next > Jackson Company acquires 100% of the stock of Clark Corporation on January 1, 2020, for $4,100 cash. As of that date Clark has the following trialbalance:CashAccounts receivableInventoryBuildings (net) (5 year life)Equipment (net) (2 year life)LandAccounts payableLong-term liabilities (due12/31/22)Common stockAdditional paid-in capitalRetained earningsTotal2020 2021$14050Debit$ 500600900Net income $120Dividends401,6001,000900$5,500CreditNet income and dividends reported by Clark for 2020 and 2021 follow:4001,9001,0007001,500$5,500The fair value of Clark's net assets that differ from their book values are listed below:

Consideration transferred more than book value = purchase consideration - Net assets…

Answered: Compute the consideration transferred…

Business

Accounting

Compute the consideration transferred in excess of book value acquired at January 1, 2020.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: SAC uses the net realizable at split-off approach to allocate joint costs and treats the sales value…

A: A split-off point is the location in a production process where jointly manufactured products are…

Q: The financial statements of New World, Incorporated, provide the following information for the…

A: The operating expenses include the salaries & wages expenses, rent expense, insurance expense,…

Q: Hardigree Corporation makes a product that has the following direct labor standards: hours per 0.3…

A: Labor efficiency variance = (Actual hours worked - Standard hours allowed)*Standard rate per hour

Q: company had no office supplies available at the beginning of the year. During the year, the company…

A: Solution: Office supplies expenses is the offices supplies used during the period. Tt is computed as…

Q: Ryan Company deposits all cash receipts on the day they are received and makes all cash payments by…

A: SOLUTION- BANK RECONCILIATION STATEMENT- IT IS A SUMMARY OF BANKING AND BUSINESS ACTIVITY THAT…

Q: I Other bo s Costing 1 Saved Help Save & Exit Muckenfuss Clinic uses the step-down method to…

A: The service department costs are allocated to the operating departments using various methods as…

Q: Which of the following would usually be found on a job cost sheet under a normal cost system? Actual…

A: As posted two independent questions we are answering only first question kindly repost the…

Q: Plummer Corporation has provided the following data for its two most recent years of operation: $ 44…

A: Absorption costing means that inventory is valued at total manufacturing cost including fixed…

Q: Inspection costs at one of Ratulowski Corporation's factories are listed below: Units Inspection…

A: Variable cost per unit using high-low method = (Highest Cost - Lowest Cost) / (Highest Activity -…

Q: Beach Corporation, which produces a single product, budgeted the following costs for its first year…

A: Under Variable Costing, variable cost like direct material, direct labor and variable manufacturing…

Q: Retained earnings Total liabilities and stockholders' equity The difference between cash receipts…

A: Introduction:- Expected cash receipts are sum of cash collection that is expected to getting in the…

Q: the 2018 balance sheet showed net fixed assets of $6.3 million. The company's 2018 income statement…

A: Solution.. Fixed assets at the beginning = $4 millions Fixed assets at the end = $6.3 millions…

Q: Marilee's Electronics uses a periodic inventory system and the average cost retail method to…

A: Inventory should be measured at cost or net realizable value, whichever is lower. Here the net…

Q: Piechocki Corporation manufactures and sells a single product. The company uses units as the measure…

A: Planning budget :— This budget is prepared by multiplying standard variable amount per activity…

Q: The Document Creation Center (DCC) for Arlington Corporation provides photocopying and document…

A: Predetermined Overhead Rate :— It is the rate used to allocate manufacturing overhead cost to cost…

Q: system: Costs: Wages and salaries Depreciation $ 286,000 270,000 231,000 $ 787,000 Utilities Total…

A: Activity-based costing is a costing method where the indirect cost is assigned to the jobs or…

Q: Bartosiewicz Clinic uses client-visits as its measure of activity. During January, the clinic…

A: Flexible budget is that type or form of budget, which changes directly with change in activity…

Q: Bond Company adopted the dollar-value LIFO inventory method on January 1, 2021. In applying the LIFO…

A: Option C is correct i.e 360000 Inventory valuation 1/1/21=310000 Inventory valuation on…

Q: ation: Direct labor rate $150 per DLH $ 120 per DLH Non-materials-related overhead Materials-related…

A: Overhead is an indirect cost incurred in the production process of the company. It is used to…

Q: Multiple Choice O $12.00 $48.00 $49.20 $54.40

A: The systematic risk or market sensitivity of an asset is indicated by its beta value. It aids…

Q: The following is a partially completed lower section of a departmental expense allocation…

A: Total square feet = 3,300 + 2,700 Total square feet = 6,000

Q: Save & Exh A company purchased land, a building, and equipment for one price of $1,650,000. The…

A: The balance sheet shows the financial position of the company by recording all the assets,…

Q: budgeted

A: Cash collections from sales play a crucial role in the working of any company. The higher the cash…

Q: Prince Incorporated has the following information: Total payroll Standard direct labor hours Labor…

A: Solution.. Direct labor rate variance = $33,100 F Standard rate = ?

Q: Gobor-258 Inc. uses a job-order costing system with a predetermined overhead rate using machine…

A: Solution: Direct material = $660 Direct labor = $1,320 Total Machine hours used = 30 Units…

Q: The net effect of AR-10's sales volume variance on profit is:

A: Sales volume variance measures the impact of actual units sold differing from the expected sales…

Q: Alison's dress shop buys dresses from McGuire Manufacturing. Alison purchased dresses from McGuire…

A: The net method always assumes that the purchaser will take the discount advantage. So entry will be…

Q: Better Health Company has two service departments distribution of each service department's efforts…

A: The cost represents the expenses incurred by the company on the production process of the company.…

Q: Talboe Company makes wheels which it uses in the production of children's wagons. Talboe's costs to…

A: Variable costs are costs that vary with the change in the level of output whereas fixed costs are…

Q: Feemster Corporation manufactures and sells a single product. The company uses units as the measure…

A: The activity variance is the difference between the flexible budget data and planning budget data.…

Q: You have just won the lottery and will receive $560,000 in one year. You will receive payments for…

A: The PV of the investment refers to the combined value of the cash flows assuming that they are…

Q: A company uses the periodic inventory system and had the following activity during the current…

A: INVENTORY VALUATIONInventory Valuation is a Method of Calculation of Value of Inventory at the End…

Q: Gabuat Corporation, which has only one product, has provided the following data concerning its most…

A: Absorption costing: It is a costing method that include all production costs, fixed and variable…

Q: Meester Corporation has an activity-based costing system with three activity cost pools-Machining,…

A: The predetermined overhead rate is used to apply the overhead cost to the production process. The…

Q: Dunbar sold 630 units of inventory during the month. Ending inventory assuming FIFO would be: (Do…

A: Correct option is D. $ 694

Q: Using the information below, calculate net cash flows from operating activities: Net income Receive…

A: CASH FLOW STATEMENTCash flow statement provides additional information to user of financial…

Q: The following accounts are from last year's books of Sharp Manufacturing: Balance. (a) Balance (f)…

A: DIRECT MATERIALS USED Raw Material Includes Both Direct Material & Indirect Material. Direct…

Q: Barsness Corporation is an oil well service company that measures its output by the number of wells…

A: Planning budget is the budget prepared for budgeted level of activity which includes sales revenue,…

Q: Landor Appliance Corporation makes and sells electric fans. Each fan regularly sells for $42. The…

A: Cost volume profit analysis is the technique used by management for decision-making. The methods…

Q: Tyare Corporation had the following inventory balances at the beginning and end of May: May 1 May 30…

A: Predetermined Overhead Rate :— It is the rate used to allocate manufacturing overhead cost to cost…

Q: The Bell Weather Co. is a new firm in a rapidly growing industry. The company is planning on…

A: Terminal value is computed by following formula:-Terminal value = whereD =dividend paidg = growth…

Q: N FV $1 PV $1 FVA $1 PVA $1 FVAD $1 PVAD $1 1 1.03000 0.97087 1.0000 0.97087 1.0300 1.00000 1.06090…

A: Formula to compute the amount deposit by Carol to accomplish her goal is as follows: Deposit amount…

Q: Materials costs Conversion costs $6,000 $7,100 Materials costs Conversion costs total of 7,100 units…

A: Under weighted average method the units in beginning work in process are not taken into account…

Q: Which of the following formulas in cell CB, when copied to cells C9 through C12, would yield the…

A: The double declining balance (DDB) depreciation method is an approach to accounting that involves…

Q: Paceheco Corporation uses the weighted-average method in its process costing system. The Molding…

A: PLEASE LIKE THE ANSWER Correct answer : 9.943 A1. Quantities…

Q: The following materials standards have been established for a particular product: Standard quantity…

A: Variance analysis is the analysis which helps the manager for having a better control on business.…

Q: Lost sales due to poor quality Quality data gathering, analysis, and reporting Net cost of spoilage…

A: Other quality-related costs, like prevention costs (incurred to prevent defects) and failure costs…

Q: A company issues 6% bonds with a par value of $100,000 at par on January 1. The market rate on the…

A: Par value of bond = $100,000 Coupon rate = 6% Semi annual coupon rate = 6%/2 = 3%

Q: On January 1, Park Corporation and Strand Corporation had condensed balance sheets as follows: Park…

A: Consolidated financial statement is the overall financial statement on which more than one…

Question

Multiple Choice

a. $900.
b. $1,400.
c. $1,900.
d. $2,400.
e. $2,600.

Fair
Value
$1,200
1,350
1,300
Long-term liabilities 1,750
Buildings
Equipment
Land
Any excess of consideration transferred over fair value of net assets acquired is considered goodwill with an indefinite life.
Compute the consideration transferred in excess of book value acquired at January 1, 2020.
Multiple Choice
$900.
$1,400.
$1,900.
< Prev
9 of 25
Next >

Jackson Company acquires 100% of the stock of Clark Corporation on January 1, 2020, for $4,100 cash. As of that date Clark has the following trial
balance:
Cash
Accounts receivable
Inventory
Buildings (net) (5 year life)
Equipment (net) (2 year life)
Land
Accounts payable
Long-term liabilities (due
12/31/22)
Common stock
Additional paid-in capital
Retained earnings
Total
2020 2021
$140
50
Debit
$ 500
600
900
Net income $120
Dividends
40
1,600
1,000
900
$5,500
Credit
Net income and dividends reported by Clark for 2020 and 2021 follow:
400
1,900
1,000
700
1,500
$5,500
The fair value of Clark's net assets that differ from their book values are listed below:

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: The computation of the cosideration transferred in excess of book value

VIEW

Step 2: Compute the consideration transferred in excess of book value acquired at January 1, 2020.

VIEW

Solution

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Marwick Corporation issues 12%, 5 year bonds with a par value of $1,030,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 10%. Wwhat is the bond's issue (selling) price, assuming the following Present Value factors: Present Value of an Annuity (series of payments) Present value of 1 1n= i= (single sum) 12% 3.6048 0.5674 10 6% 7.3601 0.5584 5. 10% 3.7908 0.6209 10 5% 7.7217 0.6139 Multiple Choice $1,030,000 $819,244 $1,507,201 Mc Graw Hill O Type here to search 9:11 PM 96% 3/21/2022 PriSc Insert దుటపర్ F6 FB F9 F10 FIL F12
Jonathan Corporation purchased debt securities during 2021 and classified them as securities available-for-sale: Fair Value, 12/31/2021 $49,200 Security Cost A $41,000 B С 73,000 31,000 68,000 40,000 All declines are considered to be temporary. How much gain will be reported by Jonathan Corporation in the December 31, 2021, Income statement relative to the portfolio?
Multiple Choice $47,700 $67,030 $81,030$61,700
Sohr Corporation processes sugar beets that it purchases from farmers. Sugar beets are processed in batches. A batch of sugar beets costs $51 to buy from farmers and $10 to crush in the company's plant. Two intermediate products, beet fiber and beet juice, emerge from the crushing process. The beet fiber can be sold as is for $21 or processed further for $11 to make the end product industrial fiber that is sold for $59. The beet juice can be sold as is for $42 or processed further for $24 to make the end product refined sugar that is sold for $59. How much profit (loss) does the company make by processing one batch of sugar beets into the end products industrial fiber and refined sugar? Multiple Choice O $(4) $8
Republic Industries decides to price delivery services according to the results of a recent activity-based costing (ABC) study. The study indicates Republic should charge $8 per order, 3% of annual order value for general delivery costs, $1.40 per item, and $30 for delivery. A year later, Republic collected the following information for two of its best customers: Cost driver Number of orders Number of deliveries Total number of items Annual order value Customer C Customer D 17 8 10 10 2,200 $195,000 4,400 $70,000 What are the total delivery costs charged to Customer C during the year?
On January 1, 2021 Tractor Company will acquire a new asset that costs $390,000 and that is anticipated to have a salvage value of $34,000 at the end of four years. The new asset: qualifies as three-year property under the Modified Accelerated Cost Recovery System (MACRS) • will replace an old asset that currently has a tax basis of $96,000 and that can be sold on this date for $76,000 (net of selling costs) • will continue to generate the same operating revenues as the old asset ($130,000 per year). However, it is predicted that savings in cash operating costs will be experienced as follows: a total of $130,000 in each of the first three years, and $91,000 in the fourth year. ● Tractor is subject to a combined income tax rate, t, of 40% and rounds all computations to the nearest dollar. Tractor's fiscal year coincides with the calendar year. Assume that any gain or loss affects the taxes paid at the end of the year in which the gain or loss occurs. The company uses the net present…
Using the following information, what is the cost to lease a car? (Assume there are no charges for damage at the end of the lease) Security deposit Monthly lease payment Opportunity cost of security deposit End-of-lease charges $140 $140 per month for a five-year lease $140x loan period (in years) * 3% interest $340
Chapter 6 i Saved Help Save & Exit Subm Rothbart Manufacturing agrees to manufacture bumper cars for 12 Banners Amusement Parks. Under the terms of the contract, 12 Banners will pay Rothbart a total of $66,000, and 12 Banners can cancel the contract if it so chooses but must pay Rothbart for work completed. Rothbart believes that, if 12 Banners cancelled the contract, Rothbart could sell the bumper cars to another amusement park and still make a profit. The manufacturing contract is expected to last six months, and as of December 31, 2021, the job is 80% complete. How much revenue should Rothbart recognize in 2021 for this contract? Multiple Choice $13.200 $66.000 553.300 Prev 1 of 15 Next >
Data for January for Bondi Corporation and its two major business segments, North and South, appear below: Sales revenues, North Variable expenses, North Traceable fixed expenses, North Sales revenues, South Variable expenses, South Traceable fixed expenses, South $ 673,000 $ 390,600 $ 80,600 $ 520,300 $ 296,900 $ 67,400 In addition, common fixed expenses totaled $182,700 and were allocated as follows: $94,900 to the North business segment and $87,800 to the South business segment. A properly constructed segmented income statement in a contribution format would show that the segment margin of the North business segment is:
Glew Corporation has provided the following information: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Cost per Unit $ 6.00 $ 3.35 $ 1.75 $ 1.00 $ 0.40 Cost per Period $ 8,800 Variable administrative expense Fixed selling and administrative expense $ 4,000 If 3,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:
Multiple Choice $26.75 $12.80 $30.05 $24.50
Jublot Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below: Beginning work in process inventory: Units in beginning work in process inventory 600 $ 7,300 $ 2,300 Materials costs Conversion costs Percent complete with respect to materials Percent complete with respect to conversion Units started into production during the month Units transferred to the next department during the month Materials costs added during the month 50% 10% 9,400 8,600 $ 196,300 $ 315,800 Conversion costs added during the month Ending work in process inventory: Units in ending work in process inventory 1,400 Percent complete with respect to materials Percent complete with respect to conversion 70% 40% The cost per equivalent unit for conversion costs for the first department for the month is closest to: