On 1/1/2020, X Company acquired 100% of YCompany's Net assets for $150,000 cash. The Bookvalue of Y's Net assets was equal to the fair value of YCompany's net assets at the date of acquisition exceptfor Land (included in fixed assets) its market valuewas less than the book value by $1,000, the balancesheet data at 1/1/2020, are as follows:itemX coY cocash404,000150,000Fixed assets100,00066,000Liabilities144,00072,000Common stock120,00060,000Retained earning240,00084,000required: if the acquisition are merger record thejournal entries and prepare x balance sheet after themerger

First, determine Company Y's fair value of net assets by deducting the fair market value of the land…

Answered: On 1/1/2020, X Company acquired 100% 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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4. Giants Co paid $12,500,000 cash to acquire California Co. At the time of the acquisition, Giants Co and California Co had the following balance sheet information: Giants Co Balance Sheet at time of purchase "Book" value Current Assets $13,400,000 Long-Term Assets $28,700,000 Total Liabilities $17,600,000 California Co Balance Sheet at time of purchase Current Assets Long-Term Assets Total Liabilities ** REQUIRED: 1) Determine the following: a) amount of goodwill that Giants Co will record as a result of the aquisition. b) Long-term Assets Giants Co will have, immediately after the acquisition. c) Total Assets Giants Co will have, immediately after the acquisition. d) Total Liabilities Giants Co will have, immediately after the acquisition. Given the same information as above, assume that Giants Co pays $10,500,000 cash, instead of $12,500,000 cash, for California Co. 2) Determine the following: a) amount of goodwill that Giants Co will record as a result of the aquisition. b)…
B6.
On December 18, 2020, Stephanie Corporation acquired 100 percent of a Swiss company for 4.002 million Swiss francs (CHF), which is indicative of book and fair value. At the acquisition date, the exchange rate was $1.00 = CHF 1. On December 18, 2020, the book and fair values of the subsidiary’s assets and liabilities were as follows: Cash CHF 802,000 Inventory 1,302,000 Property, plant, and equipment 4,002,000 Notes payable (2,104,000 ) Stephanie prepares consolidated financial statements on December 31, 2020. By that date, the Swiss franc has appreciated to $1.10 = CHF 1. Because of the year-end holidays, no transactions took place prior to consolidation. Determine the translation adjustment to be reported on Stephanie’s December 31, 2020, consolidated balance sheet, assuming that the Swiss franc is the Swiss subsidiary’s functional currency. What is the economic relevance of this translation adjustment? Determine the remeasurement gain or loss…
A-5
1. On January 1, 2018, P Co. acquired 80 percent of S Co. for $400,000 cash. On the date of acquisition, S reported common stock outstanding of $350,000 and retained earnings of $70,000. It held land with a book value of $180,000 and a market value of $210,000, and equipment with a book value of $80,000 and a market value of $98,000 at the date of combination. All depreciable assets held by S at the date of acquisition had a remaining economic life of eight years. S reported net income of $20,000 and dividends of $3,000 for 2019. Goodwill is not impaired since acquisition. P uses the equity method in accounting for its Investment in S. a) Provide the journal entries recorded by P on 12/31/ 2019 on its books to account for its investment in S b) Provide all consolidation entries needed on 12/31/ 2019
Company X acquired 100% of the voting shares of Company Y for $137,500 on 1/1/2022. The fair value of the net assets of Company Y at the date of acquisition was $150,000. This is an example of a(n): Select one: O O FELIC a. revaluation adjustment b. bargain purchase c. extraordinary loss d. positive differential id
PLTO Ltd. is considering purchasing the net assets of Ivanhoe Corporation. Following is the statement of financial position of Ivanhoe as at December 31, 2023: Ivanhoe Corporation Statement of Financial Position As at December 31, 2023 Current assets Buildings and equipment Accumulated depreciation Land Total assets Current liabilities Common shares Retained earnings Total equities Current assets Building and equipment Land Following are the fair values for Ivanhoe's net assets, as at December 31, 2023: Current liabilities $230,400 754,000 (108,000) 169.000 Value of goodwill $1,045,400 $187,000 582,000 276,400 $1,045,400 $ Calculate the value of goodwill that would be acquired by PLTO if it offered $2,061,600 for the net assets of Ivanhoe. $224,500 488,400 309,700 (166,000) $856,600
At December 31, 2023, Sandhill Corp's general ledger includes the following account balances: Copyrights $52500 Deposits with advertising agency (will be used to promote goodwill) 43000 Discount on bonds payable 74000 Excess of cost over fair value of identifiable net assets of acquired subsidiary 589500 Trademarks 106000 In the preparation of Sandhill's balance sheet as of December 31, 2023, what should be reported as total intangible assets? O $158500 O $748000 $791000 O $822000
Write the complete solutions legibly.
1. An 80% interest was acquired by the Betson Corp. in the Lakers Company on July 1, 2014. The consideration transferred was P50,000.000. Lakers Company net assets were P42,500,000 at acquisition date. Requirement: Compute the amount of goodwill assuming Betson Corp. elects to measure the non- controlling interest. a.proportionate to its share on the net assets; and b. at fair value 2. Condensed statements of financial position of Pete Company and Sally Company on July 31, 2014 were as follows: Sally Co. P670,000 Pete Co. Total Assets P700,000 Total Liabilities P300,000 P300,000 250,000 Ordinary Share Capital Paid-in capital in excess of par Retained Earnings(deficit) Total Liabilities and Equity 200,000 80,000 130,000 (10,000) P670,000 120,000 P700,000 On July 31, 2014, Pete and Sally entered into a combination. The new company, Person Corp. issued 75,000 shares of P10 par value ordinary share capital for all the outstanding share capital of Pete and Sally. Requirement: a. Prepare the…
On September 1, 2017, Winans Corporation acquired Aumont Enterprises for a cash payment of $700,000, At the time of purchase, Aumont's Balance sheet showed assets of $620,000 Liabilities of $200.000 and owners equity of $420,000, The fair value of Aumonts assets is estimated to be $800 000. Compute the amount of good will acquired by Winans. O S80 000 O $100.000 O $180 000 O All of the above
H

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