On July 1, TruData Company issues 10,000 shares of its common stock with a $5 par value and a $40 fair value in exchange for all of Webstat Company's outstanding voting shares. Webstat's pre- combination book and fair values are shown along with book values for TruData's accounts as follows. Revenues (1/1 to 7/1) Expenses (1/1 to 7/1) Retained earnings, 1/1 Cash and receivables Inventory ... Patented technology (net) Land .... Buildings and equipment (net) .... Liabilities Common stock .... Additional paid-in capital TruData Book Values $(250,000) 170,000 (130,000) 140,000 190,000 230,000 400,000 100,000 (540,000) (300,000) (10,000) Webstat Book Values $(130,000) 80,000 (150,000) 60,000 145,000 180,000 200,000 75,000 (360,000) (70,000) (30,000) Webstat Fair Values $ 60,000 175,000 200,000 225,000 75,000 (350,000)
On July 1, TruData Company issues 10,000 shares of its common stock with a $5 par value and a $40 fair value in exchange for all of Webstat Company's outstanding voting shares. Webstat's pre- combination book and fair values are shown along with book values for TruData's accounts as follows. Revenues (1/1 to 7/1) Expenses (1/1 to 7/1) Retained earnings, 1/1 Cash and receivables Inventory ... Patented technology (net) Land .... Buildings and equipment (net) .... Liabilities Common stock .... Additional paid-in capital TruData Book Values $(250,000) 170,000 (130,000) 140,000 190,000 230,000 400,000 100,000 (540,000) (300,000) (10,000) Webstat Book Values $(130,000) 80,000 (150,000) 60,000 145,000 180,000 200,000 75,000 (360,000) (70,000) (30,000) Webstat Fair Values $ 60,000 175,000 200,000 225,000 75,000 (350,000)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
On its acquisition-date consolidated
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Transcribed Image Text:On July 1, TruData Company issues 10,000 shares of its common stock with a $5 par value and a
$40 fair value in exchange for all of Webstat Company's outstanding voting shares. Webstat's pre-
combination book and fair values are shown along with book values for TruData's accounts as follows.
Revenues (1/1 to 7/1).
Expenses (1/1 to 7/1)
Retained earnings, 1/1
Cash and receivables
Inventory ...
Patented technology (net)
Land .......
Buildings and equipment (net)....
Liabilities
Common stock ...
Additional paid-in capital
TruData
Book Values
$(250,000)
170,000
(130,000)
140,000
190,000
230,000
400,000
100,000
(540,000)
(300,000)
(10,000)
Webstat
Book Values
$(130,000)
80,000
(150,000)
60,000
145,000
180,000
200,000
75,000
(360,000)
(70,000)
(30,000)
Webstat
Fair Values
$ 60,000
175,000
200,000
225,000
75,000
(350,000)
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