Separately determine each individual amount that Presidio Company would report in its consolidated balance sheet following the acquisition of Mason. Include in Presidio's retained earnings any adjustments to income accounts from part (a). Note: Input all amounts as positive values. Cash Receivables Inventory Land Buildings (net) Consolidated Totals $ 125,400 x 550,000 573,000 × 454,000 × 701,000 × 269,200 Equipment (net) Investment in Mason Total assets $ 2,672,600 Accounts payable $ 280,300 Long-term liabilities 798,000 × Common stock Additional paid-in capital 230,000 × 360,000 × Retained earnings 1,004,300 x Total liabilities and equities $ 2,672,600 < Required A Required C > < Prev 7 of 8 Next > On January 1, 2024, Presidio Company acquired 100 percent of the outstanding common stock of Mason Company. To acquire these shares, Presidio issued to the owners of Mason $310,000 in long-term liabilities and 20,000 shares of common stock having a par value of $1 per share but a fair value of $10 per share. Presidio paid $30,500 to accountants, lawyers, and brokers for assistance in the acquisition and another $15,000 in connection with stock issuance costs. Prior to these transactions, the balance sheets for the two companies were as follows: Items Presidio Company Cash Receivables Inventory Land Buildings (net) Equipment (net) Accounts payable Long-term liabilities Common stock-$1 par value Common stock-$20 par value Additional paid-in capital Retained earnings, 1/1/24 Mason Company $ 85,800 $ 39,600 361,000 189,000 362,000 211,000 269,000 185,000 425,000 276,000 217,000 52,200 (214,000) (66,300) (488,000) (310,000) (110,000) Ө Ө (120,000) (360,000) (547,800) Ө (456,500) Note: Parentheses indicate a credit balance. Presidio's appraisal of Mason's fair values deemed three accounts to be undervalued: Inventory by $6,400, Land by $25,000, and Buildings by $29,200. Presidio plans to maintain Mason's separate legal identity and to operate Mason as a wholly owned subsidiary. Required: a. Prepare Presidio's journal entries to record its acquisition of Mason, related professional fees paid, and stock acquisition costs. b. Separately determine each individual amount that Presidio Company would report in its consolidated balance sheet following the

Separately determine each individual amount that Presidio Company would report in its consolidated balance sheet following the acquisition of Mason. Include in Presidio's retained earnings any adjustments to income accounts from part (a). Note: Input all amounts as positive values. Cash Receivables Inventory Land Buildings (net) Consolidated Totals $ 125,400 x 550,000 573,000 × 454,000 × 701,000 × 269,200 Equipment (net) Investment in Mason Total assets $ 2,672,600 Accounts payable $ 280,300 Long-term liabilities 798,000 × Common stock Additional paid-in capital 230,000 × 360,000 × Retained earnings 1,004,300 x Total liabilities and equities $ 2,672,600 < Required A Required C > < Prev 7 of 8 Next > On January 1, 2024, Presidio Company acquired 100 percent of the outstanding common stock of Mason Company. To acquire these shares, Presidio issued to the owners of Mason $310,000 in long-term liabilities and 20,000 shares of common stock having a par value of $1 per share but a fair value of $10 per share. Presidio paid $30,500 to accountants, lawyers, and brokers for assistance in the acquisition and another $15,000 in connection with stock issuance costs. Prior to these transactions, the balance sheets for the two companies were as follows: Items Presidio Company Cash Receivables Inventory Land Buildings (net) Equipment (net) Accounts payable Long-term liabilities Common stock-$1 par value Common stock-$20 par value Additional paid-in capital Retained earnings, 1/1/24 Mason Company $ 85,800 $ 39,600 361,000 189,000 362,000 211,000 269,000 185,000 425,000 276,000 217,000 52,200 (214,000) (66,300) (488,000) (310,000) (110,000) Ө Ө (120,000) (360,000) (547,800) Ө (456,500) Note: Parentheses indicate a credit balance. Presidio's appraisal of Mason's fair values deemed three accounts to be undervalued: Inventory by $6,400, Land by $25,000, and Buildings by $29,200. Presidio plans to maintain Mason's separate legal identity and to operate Mason as a wholly owned subsidiary. Required: a. Prepare Presidio's journal entries to record its acquisition of Mason, related professional fees paid, and stock acquisition costs. b. Separately determine each individual amount that Presidio Company would report in its consolidated balance sheet following the

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter8: Consolidated Tax Returns

Section: Chapter Questions

Problem 36P

See similar textbooks