General accounting question Delta Industries acquires a manufacturing facility from Omega Manufacturing in exchange for5,000 shares of Delta's $10 par value common stock and $150,000 cash. At the time of theacquisition, Delta's stock was trading at $32 per share. How much should Delta Industriesrecord as the cost of the manufacturing facility?A. $200,000B. $310,000C. $150,000D. $250,000

Step 1: Definition of Acquisition CostThe acquisition cost of an asset is the total amount paid to…

Answered: Delta Industries acquires a…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 11MCQ

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practice for number 10
Bidwell Corp has made a cash tender offer for 2 million shares of Marda Corp. at a price of $20, which is $6 higher than Marda's current stand-alone value. Which one of the below is the cost of the acquisition? O $40 million O $28 million O $12 million O Zero
9. help me to answer this with solution. thank you
Q5
Metro Corp. acquires a patent from Maxwell Co. in exchange for 3,000 shares of Metro Corp.'s $5 par value common stock and $85,000 cash. When the patent was initially issued to Maxwell Co., Metro Corp.'s stock was selling at $8 per share. However, when Metro Corp. acquired the patent, its stock was selling for $10 per share. At what amount should Metro Corp. record the patent?
Bayside Fishing Supply Co.is acquiring Fishing Lure Specialists for $25,250 in cash. Bayside Fishing Supply Co. has 2,350 shares outstanding at a market price per share of $39. Fishing Lure Specialists has 1,500 shares outstanding at $16 per share. Neither firm has outstanding debt. The incremental value (synergy) of the acquisition is $2,300. What is the value of Bayside Fishing Supply Co. after the acquisition? A $89,150 B $56,650 C $88,950 D $92,700 E) $73,750
Upvote will be given. Write the complete solutions legibly and solve it manually. Final answers are: 1. 4,212,500 2. 9,212, 500
- What amount should be reported as loss from investment in 2024? A. P320,000 B. P800,000 C. P200,000 D. P120,000
Clifton Industries acquired a warehouse valued at $200,000 for property tax purposes in exchange for 15,000 shares of its $5 par common stock. The stock is widely traded and sells for $16 per share. At what amount should the warehouse be recorded by Clifton Industries? a. $75,000 b. $240,000 c. $200,000 d. $160,000
ukm0jUnAg/formResponse?pl-1 Required Suppose that AXE company acquires exactly 25% of the voting common stock of Company SARDAR Inc. for $3,000,000 at the beginning of the year 2020. Pfizer company reports $1,200,000 earnings for the year in its net income and pays $550,000 in cash dividends at the end of the year 2020. 1. Using the cost method, what is the investment income and the balance sheet investment account balance respectively for AXE company? O A) $137,500, $3,000,000 B) $300,000; $3,162,500 C) $137,500; $2,300,000 D) None of the above.
Suppose that an acquirer decides to pay a 25% premium to buy Uber. The book value of Uber’s net assets is $6.7 million. The fair value of Uber’s net assets is estimated at $7 million. What amount of goodwill will be recorded in this acquisition? Question 14Answer a. $75,000 b. $8,750,000 c. $1,675,000 d. $1,750,000
Assume that a drilling machine is acquired for the following consideration: cash: $200,000 shares: 20,000 shares with a market value of $4.50 each Machine: Cost $100,000, accumulated depreciation, $75,000, fair value $37,000 The buying company also agrees to assume the liability of the selling company’s accounts payable of $25 000 as part of the drilling machine acquisition. Required: Calculate the acquisition cost of the drilling machine

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