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On January 1, Park Corporation and Strand Corporation had condensed balance sheets as follows: Strand $ 37,000 44,500 $ 81,500 $ 31,500 Items Current assets Noncurrent assets. Total assets Current liabilities Long-term debt Stockholders' equity. Total liabilities and equities Park $ 118,250 98,500 $ 216,750 $50, 250 74,500 92,000 $216,750 a. Current assets b. Noncurrent assets c. Current liabilities d. Noncurrent liabilities e. Stockholders' equity 0 50,000 $ 81,500 On January 2, Park borrowed $65,200 and used the proceeds to obtain 80 percent of the outstanding common shares of Strand. The acquisition price was considered proportionate to Strand's total fair value. The $65,200 debt is payable in 10 equal annual principal payments, plus interest, beginning December 31. The excess fair value of the investment over the underlying book value of the acquired net assets is allocated to inventory (60 percent) and to goodwill (40 percent). Required: On a consolidated balance sheet as of January 2, calculate the amounts for each of the following:

On January 1, Park Corporation and Strand Corporation had condensed balance sheets as follows: Strand $ 37,000 44,500 $ 81,500 $ 31,500 Items Current assets Noncurrent assets. Total assets Current liabilities Long-term debt Stockholders' equity. Total liabilities and equities Park $ 118,250 98,500 $ 216,750 $50, 250 74,500 92,000 $216,750 a. Current assets b. Noncurrent assets c. Current liabilities d. Noncurrent liabilities e. Stockholders' equity 0 50,000 $ 81,500 On January 2, Park borrowed $65,200 and used the proceeds to obtain 80 percent of the outstanding common shares of Strand. The acquisition price was considered proportionate to Strand's total fair value. The $65,200 debt is payable in 10 equal annual principal payments, plus interest, beginning December 31. The excess fair value of the investment over the underlying book value of the acquired net assets is allocated to inventory (60 percent) and to goodwill (40 percent). Required: On a consolidated balance sheet as of January 2, calculate the amounts for each of the following:

FINANCIAL ACCOUNTING
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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On January 1, Park Corporation and Strand Corporation had condensed balance sheets as follows: Current assets Noncurrent assets Total assets Current liabilities Long-term debt Stockholders' equity Total liabilities and equities Items a. Current assets b. Noncurrent assets Park c. Current liabilities. d. Noncurrent liabilities e. Stockholders' equity Strand $ 118,250 $ 37,000 98,500 *** $216,750 $ 81,500 $ 50,250 $ 31,500 74,500 92,000 $ 216,750 44,500 On January 2, Park borrowed $65,200 and used the proceeds to obtain 80 percent of the outstanding common shares of Strand. The acquisition price was considered proportionate to Strand's total fair value. The $65,200 debt is payable in 10 equal annual principal payments, plus interest, beginning December 31. The excess fair value of the investment over the underlying book value of the acquired net assets is allocated to inventory (60 percent) and to goodwill (40 percent). 50,000 $ 81,500 Required: On a consolidated balance sheet as of January 2, calculate the amounts for each of the following:
Transcribed Image Text:On January 1, Park Corporation and Strand Corporation had condensed balance sheets as follows: Current assets Noncurrent assets Total assets Current liabilities Long-term debt Stockholders' equity Total liabilities and equities Items a. Current assets b. Noncurrent assets Park c. Current liabilities. d. Noncurrent liabilities e. Stockholders' equity Strand $ 118,250 $ 37,000 98,500 *** $216,750 $ 81,500 $ 50,250 $ 31,500 74,500 92,000 $ 216,750 44,500 On January 2, Park borrowed $65,200 and used the proceeds to obtain 80 percent of the outstanding common shares of Strand. The acquisition price was considered proportionate to Strand's total fair value. The $65,200 debt is payable in 10 equal annual principal payments, plus interest, beginning December 31. The excess fair value of the investment over the underlying book value of the acquired net assets is allocated to inventory (60 percent) and to goodwill (40 percent). 50,000 $ 81,500 Required: On a consolidated balance sheet as of January 2, calculate the amounts for each of the following:
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