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Current Liabilities Long-Term Debt Common Stock, $10 par Paid-in Capital in Excess of Par Retained Earnings Required: $2,500,000 $1,400,000 $ 200,000 $ 100,000 300,000 300,000 1,400,000 400,000 0 100,000 600,000 500,000 $2,500,000 $1,400,000 Record the acquisition of Nottle's net assets, the issuance of the stock and/or payment of cash, and payment of the related costs. Assume that Zebb issued 30,000 shares of new common stock with a fair value of $25 per share and paid $500,000 cash for all of the net assets of Nottle. Acquisition costs of $50,000 and stock issuance costs of $20,000 were paid in cash. Current assets had a fair value of $650,000, plant and equipment had a fair value of $900,000, and long-term debt had a fair value of $330,000.

Current Liabilities Long-Term Debt Common Stock, $10 par Paid-in Capital in Excess of Par Retained Earnings Required: $2,500,000 $1,400,000 $ 200,000 $ 100,000 300,000 300,000 1,400,000 400,000 0 100,000 600,000 500,000 $2,500,000 $1,400,000 Record the acquisition of Nottle's net assets, the issuance of the stock and/or payment of cash, and payment of the related costs. Assume that Zebb issued 30,000 shares of new common stock with a fair value of $25 per share and paid $500,000 cash for all of the net assets of Nottle. Acquisition costs of $50,000 and stock issuance costs of $20,000 were paid in cash. Current assets had a fair value of $650,000, plant and equipment had a fair value of $900,000, and long-term debt had a fair value of $330,000.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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On January 1, 2016, Zebb and Nottle Companies had condensed balance sheets as shown below: Current Assets Plant and Equipment Current Liabilities Long-Term Debt Common Stock, $10 par Paid-in Capital in Excess of Par Retained Earnings Required: Zebb Company Company $1,000,000 $ 600,000 1,500,000 800,000 $2,500,000 $1,400,000 $ 200,000 300,000 1,400,000 Nottle 0 $ 100,000 300,000 400,000 100,000 600,000 500,000 $2,500,000 $1,400,000 Record the acquisition of Nottle's net assets, the issuance of the stock and/or payment of cash, and payment of the related costs. Assume that Zebb issued 30,000 shares of new common stock with a fair value of $25 per share and paid $500,000 cash for all of the net assets of Nottle. Acquisition costs of $50,000 and stock issuance costs of $20,000 were paid in cash. Current assets had a fair value of $650,000, plant and equipment had a fair value of $900,000, and long-term debt had a fair value of $330,000.
Transcribed Image Text:On January 1, 2016, Zebb and Nottle Companies had condensed balance sheets as shown below: Current Assets Plant and Equipment Current Liabilities Long-Term Debt Common Stock, $10 par Paid-in Capital in Excess of Par Retained Earnings Required: Zebb Company Company $1,000,000 $ 600,000 1,500,000 800,000 $2,500,000 $1,400,000 $ 200,000 300,000 1,400,000 Nottle 0 $ 100,000 300,000 400,000 100,000 600,000 500,000 $2,500,000 $1,400,000 Record the acquisition of Nottle's net assets, the issuance of the stock and/or payment of cash, and payment of the related costs. Assume that Zebb issued 30,000 shares of new common stock with a fair value of $25 per share and paid $500,000 cash for all of the net assets of Nottle. Acquisition costs of $50,000 and stock issuance costs of $20,000 were paid in cash. Current assets had a fair value of $650,000, plant and equipment had a fair value of $900,000, and long-term debt had a fair value of $330,000.
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