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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Ogag company issued 1,000 shares of its P5 par value ordinary shares as payment for 1,000 hours of legal services performed. The fair value of the legal services was P160,000. On the date of issuance, the company’s shares were trading on a public exchange at P140 per share. Determine the increase in the company’s equity as a result of this transaction.
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
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On March 15, American eagle declares a quarterly cash dividend of $0.035 per-share payable on April 13 to all stockholders of record on March 30. Record American Eagle‘s declaration and payment of cash dividends for its 228 million shares. (If no entry is required for a transaction/event, select “ no journal entry required” in the first account field enter your answer in dollars not in millions)

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