In a qualifying reorganization, Cato Corporation exchanges $8,005,000 worth of stock and property valued at $3,202,000 ($1,601,000 basis) for all of Firestar Corporation's assets, which have a value of $11,207,000 and a $2,241,400 basis. Firestar distributes the property received from Cato. The exchange meets all Code requirements. If an amount is zero, enter "0". a. What is Cato's recognized gain/loss from the reorganization? Cato recognizes a gain ✔ of $ b. What is Firestar's recognized gain/loss from the reorganization? Firestar recognizes no gain or loss ✓of $

In a qualifying reorganization, Cato Corporation exchanges $8,005,000 worth of stock and property valued at $3,202,000 ($1,601,000 basis) for all of Firestar Corporation's assets, which have a value of $11,207,000 and a $2,241,400 basis. Firestar distributes the property received from Cato. The exchange meets all Code requirements. If an amount is zero, enter "0". a. What is Cato's recognized gain/loss from the reorganization? Cato recognizes a gain ✔ of $ b. What is Firestar's recognized gain/loss from the reorganization? Firestar recognizes no gain or loss ✓of $

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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Alfonso Inc. acquired 100 percent of the voting shares of BelAire Company on January 1, 2020. In exchange, Alfonso paid $455,000 in cash and issued 100,000 shares of its own $1 par value common stock. On this date, Alfonso’s stock had a fair value of $15 per share. The combination is a statutory merger with BelAire subsequently dissolved as a legal corporation. BelAire’s assets and liabilities are assigned to a new reporting unit. The following shows fair values for the BelAire reporting unit for January 1, 2020 along with respective carrying amounts on December 31, 2021. BelAire Reporting Unit Fair Values1/1/20 Carrying Amounts12/31/21 Cash $ 92,000 $ 49,000 Receivables 208,250 244,000 Inventory 234,000 259,000 Patents 753,500 864,000 Customer relationships 597,250 576,000 Equipment (net) 397,500 297,000 Goodwill ? 410,000 Accounts payable (97,500 ) (187,000 ) Long-term liabilities (640,000 ) (542,000…
Please Compute the Goodwill on the Acquisition Data. That is all of the Information that is needed for the question Also Please make sure it is correct
On January 1, 2019, Post Corporation acquired 80 percent of Star Company's common stock for $160,000 cash, when the book value of Star Company was $160,000. At the date of the business combination, the book values of Star's net assets and liabilities approximated fair value except for inventory, which had a book value of $40,000 and fair value of $45,000, and equipment, which had a book value of $100,000 and a fair value of $120,000. Additional information: * Star Company uses the FIFO method and all inventory acquired on January 1, 2019 were sold during 2019. * Equipment has a remaining useful life of 10 years, and the straight-line method is used. * Star reported net income of $60,000 and $75,000 for 2019 and 2020 respectively. * Star Company declared and paid dividends of $30,000 in 2019 and $40,000 in 2020. What is the balance of Investment in Star Company on December 31, 2020? Select one: a. $204,800 b. $212,000 c. $160,000 d. $208,000 solve it as soon as possible pleaseeeee
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On July 1, 2021, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of $792,400 in cash and equity securities. The remaining 30 percent of Atlanta’s shares traded closely near an average price that totaled $339,600 both before and after Truman’s acquisition. In reviewing its acquisition, Truman assigned a $125,500 fair value to a patent recently developed by Atlanta, even though it was not recorded within the financial records of the subsidiary. This patent is anticipated to have a remaining life of five years. The following financial information is available for these two companies for 2021. In addition, the subsidiary’s income was earned uniformly throughout the year. The subsidiary declared dividends quarterly. Truman Atlanta Revenues $ (768,485 ) $ (536,000 ) Operating expenses 418,000 378,000 Income of subsidiary (46,515 ) 0 Net income $ (397,000 ) $ (158,000 ) Retained earnings, 1/1/21 $…
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