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On January 1, Park Corporation and Strand Corporation had condensed balance sheets as follows: Strand $ 31,050 49,700 $ 80,750 $ 30,750 0 50,000 $ 80,750 Current assets Noncurrent assets Total assets Current liabilities. Long-term debt Stockholders' equity Total liabilities and equities Items On January 2, Park borrowed $58,400 and used the proceeds to obtain 80 percent of the outstanding common shares of Strand. T acquisition price was considered proportionate to Strand's total fair value. The $58,400 debt is payable in 10 equal annual principali 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). a. Current assets b. Noncurrent assets c. Current liabilities Required: On a consolidated balance sheet as of January 2, calculate the amounts for each of the following: d. Noncurrent liabilities e. Stockholders' equity Answer is complete but not entirely correct. Park $ 92,500 114,500 $ 207,000 $ $ $ 44,000 64,000 99,000 $ 207,000 $ $ $ 124,250 198,540 74,750 122,400 162,360

On January 1, Park Corporation and Strand Corporation had condensed balance sheets as follows: Strand $ 31,050 49,700 $ 80,750 $ 30,750 0 50,000 $ 80,750 Current assets Noncurrent assets Total assets Current liabilities. Long-term debt Stockholders' equity Total liabilities and equities Items On January 2, Park borrowed $58,400 and used the proceeds to obtain 80 percent of the outstanding common shares of Strand. T acquisition price was considered proportionate to Strand's total fair value. The $58,400 debt is payable in 10 equal annual principali 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). a. Current assets b. Noncurrent assets c. Current liabilities Required: On a consolidated balance sheet as of January 2, calculate the amounts for each of the following: d. Noncurrent liabilities e. Stockholders' equity Answer is complete but not entirely correct. Park $ 92,500 114,500 $ 207,000 $ $ $ 44,000 64,000 99,000 $ 207,000 $ $ $ 124,250 198,540 74,750 122,400 162,360

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: Strand $ 31,050 49,700 $ 80,750 $ 30,750 8 50,000 $ 80,750 Current assets Noncurrent assets Total assets Items Current liabilities Long-term debt Stockholders' equity Total liabilities and equities On January 2, Park borrowed $58,400 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 $58,400 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). a. Current assets b. Noncurrent assets c. Current liabilities. Required: On a consolidated balance sheet as of January 2, calculate the amounts for each of the following: d. Noncurrent liabilities e. Stockholders' equity Park $ 92,500 114,500 $207,000 Answer is complete but not entirely correct. 124,250 € 198,540 x 74,750 122,400 162,360 $ 44,000 64,000 99,000 $ 207,000 $ $ $ $ $
Transcribed Image Text:On January 1, Park Corporation and Strand Corporation had condensed balance sheets as follows: Strand $ 31,050 49,700 $ 80,750 $ 30,750 8 50,000 $ 80,750 Current assets Noncurrent assets Total assets Items Current liabilities Long-term debt Stockholders' equity Total liabilities and equities On January 2, Park borrowed $58,400 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 $58,400 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). a. Current assets b. Noncurrent assets c. Current liabilities. Required: On a consolidated balance sheet as of January 2, calculate the amounts for each of the following: d. Noncurrent liabilities e. Stockholders' equity Park $ 92,500 114,500 $207,000 Answer is complete but not entirely correct. 124,250 € 198,540 x 74,750 122,400 162,360 $ 44,000 64,000 99,000 $ 207,000 $ $ $ $ $
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