On December 31, 20X1, Par Inc reported total assets of $860,203, while Sub Corp reported total assets of $171,991. The fairvalues of Sub's assets and liabilities on the same date were $214421 and $49,313 respectively. On the morning of January 1,20x2, Par agreed to acquire 100% of Sub for a total value of 86.25% of Sub for a total value of $286,678 by paying cash. On theconsolidated balance sheet immediately after the acquisition, what should be the total assets reported by the combined entityunder the fair-value-enterprise (FVE) method?a. $955,218b. $979,099Oc. $1,002,979Od. $1,026.860O e. $931,338On January 1, 20X1, Par inc acquires 79.05% of Sub Corp for $153,469 in cash. Immediately before the acquisition, the book valueof Sub's identifiable net assets was $104,016 with a fair value of $116,806, while the book value of Par's net assets was $204.623.What will be the amount of total shareholders' equity on the consolidated balance sheet immediately after the acquisition if thefair-value-enterprise (FVE) method is used?O a. $245,296O b. $251,428Oc. $263,693O d. $239,163O e. $257,560

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Answered: On December 31, 20X1, Par Inc reported…

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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