esOn July 1, TruData Company issues 10,000 shares of its common stock with a $5 par value and a $40 fair value inexchange for all of Webstat Company's outstanding voting shares. Webstat's precombination book and fair values areshown along with book values for TruData's accounts as follows.Revenues (1/1 to 7/1)Expenses (1/1 to 7/1)Retained earnings, 1/1Cash and receivablesInventoryPatented technology (net)LandBuildings and equipment (net)LiabilitiesCommon stockAdditional paid-in capitalMultiple Choice$0.TruDataBook Values$ (250,000)170,000(130,000)140,000190,000230,000400,000100,000(540,000)(300,000)(10,000)$15,000.WebstatWebstatBook Values Fair Values$ (130,000)80,000(150,000)60,000 $On its acquisition-date consolidated balance sheet, what amount should TruData report as goodwill?< Prev145,000180,000200,00075,000(360,000)(70,000)(30,000)60,000175,000200,000225,00075,000(350,000)4 of 7wwwwwwwwwNext >

In the acquisition, the parent company pays the value to the investee company in cash or kind…

Answered: On July 1, TruData Company issues…

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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Bridgeport Inc's $10 par value common stock is actively traded at a market price of $15 per share. Bridgeport issues 4,800 shares to purchase land advertised for sale at $71,500. Journalize the issuance of the stock in acquiring the land. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit eTextbook and Media
The Ivanhoe Corporation has 94,600 $2.00 noncumulative preferred shares that have been issued. It declares a quarterly cash dividend on May 15 to shareholders of record on June 10. The dividend is paid on June 30. Prepare the entries on the appropriate dates to record the cash dividend. (List all debit entries before credit entries. Record journal entries in the order presented in the problem. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles Debit Credit
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Clothing Frontiers began operations on January 1 and engages in the following transactions during the year related to stockholders' equity. January 1 Issues 700 shares of common stock for $34 per share. April 1 Issues 110 additional shares of common stock for $38 per share. 2. Record the transactions, assuming Clothing Frontiers has either $1 par value or $1 stated value common stock. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 2 Record the issuance of 700 shares of common stock for $34 per share. Note: Enter debits before credits. Date General Journal Debit Credit January 01

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