Halwell Motor Company acquires all of the stock of Ornex Auto Services for $60,000,000 in cash. The books of Ornex report the following account balances at the date of acquisition (in trial balance format). Date-of-acquisition fair values are alsodisplayed.Current assetsProperty, netLiabilitiesCapital stockRetained earningsTotalBook Value Dr (Cr)$1,000,000Fair ValueDr (Cr)$650,00059,000,000 40,000,000(35,000,000) $(36,000,000)(10,000,000)(15,000,000)$-Omex has no previously unrecorded identifiable intangiblesOn the consolidation working paper, eliminating entry (R)Select one:O a debits goodwill by $55,350,000O b. credits Investment in Ornex by $25,000,000OOc. debits capital stock by $10,000,000d. debits current assets by $350,000

Goodwill:Goodwill is calculated by taking the difference between cash paid for an acquisition and…

Halwell Motor Company acquires all of the stock of Ornex Auto Services for $60,000,000 in cash. The books of Ornex report the following account balances at the date of acquisition (in trial balance format). Bate-of-3 displayed. Current assets Property, net Liabilities Capital stock Retained earnings Total Fair Value Dr (Cr) $650,000 $1,000,000 59.000.000 40,000.000 (35,000,000) $(36,000,000) (10,000,000) (15,000,000) Book Value Dr (Cr) O $ Ornex has no previously unrecorded identifiable intangibles On the consolidation working paper, eliminating entry (R) Select one: . a debits goodwil by $55.350,000 O b. credits Investment in Ornex by $25,000,000 c. debits capital stock by $10,000,000 d. debits current assets by $350,000

Halwell Motor Company acquires all of the stock of Ornex Auto Services for $60,000,000 in cash. The books of Ornex report the following account balances at the date of acquisition (in trial balance format). Bate-of-3 displayed. Current assets Property, net Liabilities Capital stock Retained earnings Total Fair Value Dr (Cr) $650,000 $1,000,000 59.000.000 40,000.000 (35,000,000) $(36,000,000) (10,000,000) (15,000,000) Book Value Dr (Cr) O $ Ornex has no previously unrecorded identifiable intangibles On the consolidation working paper, eliminating entry (R) Select one: . a debits goodwil by $55.350,000 O b. credits Investment in Ornex by $25,000,000 c. debits capital stock by $10,000,000 d. debits current assets by $350,000

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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