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Determine the consolidated balances which Peris would present on their consolidated balance sheet for the following accounts 3. Construction Permits 4. Goodwill

Determine the consolidated balances which Peris would present on their consolidated balance sheet for the following accounts 3. Construction Permits 4. Goodwill

FINANCIAL ACCOUNTING
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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Determine the consolidated balances which Peris would present on their consolidated balance sheet for the following accounts

3. Construction Permits

4. Goodwill

14) On December 31, 2013, Peris Company acquired Shanta Company's outstanding stock by paying $400,000 cash and issuing 10,000 shares of its own $30 par value common stock, when the market price was $32 per share. Peris paid legal and accounting fees amounting to $35,000 in addition to stock issuance costs of $8,000. Shanta is dissolved on the date of the acquisition. Balance sheet information for Peris and Shanta immediately preceding the acquisition is shown below, including fair values for Shanta's assets and liabilities. Peris Shanta Shanta Book Value Book Value Fair Value $140,000 Cash 490,000 $140,000 Accounts Receivable 560,000 280,000 280,000 Inventory 520,000 200,000 260,000 Land 460,000 150,000 140,000 Plant Assets – Net 980,000 325,000 355,000 Construction Permits 380,000 170,000 190,000 (140,000) (45,000) Accounts Payable Other accrued expenses Notes Payable Common Stock ($30 par) Common Stock ($20 par) (460,000) (160,000) (800,000) (960,000) (140,000) (45,000) (460,000) (460,000) (200,000) Additional P.I.C (192,000) (818,000) (80,000) (340,000) Retained Earnings
Transcribed Image Text:14) On December 31, 2013, Peris Company acquired Shanta Company's outstanding stock by paying $400,000 cash and issuing 10,000 shares of its own $30 par value common stock, when the market price was $32 per share. Peris paid legal and accounting fees amounting to $35,000 in addition to stock issuance costs of $8,000. Shanta is dissolved on the date of the acquisition. Balance sheet information for Peris and Shanta immediately preceding the acquisition is shown below, including fair values for Shanta's assets and liabilities. Peris Shanta Shanta Book Value Book Value Fair Value $140,000 Cash 490,000 $140,000 Accounts Receivable 560,000 280,000 280,000 Inventory 520,000 200,000 260,000 Land 460,000 150,000 140,000 Plant Assets – Net 980,000 325,000 355,000 Construction Permits 380,000 170,000 190,000 (140,000) (45,000) Accounts Payable Other accrued expenses Notes Payable Common Stock ($30 par) Common Stock ($20 par) (460,000) (160,000) (800,000) (960,000) (140,000) (45,000) (460,000) (460,000) (200,000) Additional P.I.C (192,000) (818,000) (80,000) (340,000) Retained Earnings
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