On January 1, 2019 Hand acquires 100% of Finger in a statutory merger. At the acquisition date, the following were the book values and fair values of fixed assets of these two companies: Book Value Fair Value Hand 930,000 Finger 240,000 840,000 330,000 a. What is consolidated fixed assets under the acquisition method. b. What is consolidated fixed assets under the purchase method. c. What is consolidated fixed assets under the pooling of interests method.

On January 1, 2019 Hand acquires 100% of Finger in a statutory merger. At the acquisition date, the following were the book values and fair values of fixed assets of these two companies: Book Value Fair Value Hand 930,000 Finger 240,000 840,000 330,000 a. What is consolidated fixed assets under the acquisition method. b. What is consolidated fixed assets under the purchase method. c. What is consolidated fixed assets under the pooling of interests method.

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter12: Auditing Long-lived Assets And Merger And Acquisition Activity

Section: Chapter Questions

Problem 37RQSC

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