On March 1, 2023, Forrest Inc. issued 50,000 voting common shares in return for all the common shares of MountainCorporation. At that time, Forrest's shares were trading at $19 per share. After the transaction, the original shareholdergroup of Forrest retained control. Below is information related to Mountain Corporation:4Canying valueFair value$ 75,000$ 75,000150,000125,000275,000315,000550,000650,000$1,150,000$1.065.000CashAccounts receivableInventoryProperty, plant, and equipment (net)Total assetsCurrent liabilitiesLong-term debtCommon sharesRetained earning$275,000Total habilities and shareholders' equity$1,150,000What amount of goodwill would be recorded in the consolidated statement of financial position as a result of thisacquisition?$105,000$265,000$ 115,000275,000150,000610,000$115,000$115,000275,000

The cost of investment includes the cash transferred, fair value of assets transferred, fair value…

Answered: On March 1, 2023, Forrest Inc. issued…

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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Required information [The following information applies to the questions displayed below.] On January 2, 2024, Sanborn Tobacco Incorporated bought 5% of Jackson Industry's capital stock for $92 million. Jackson Industry's net income for the year ended December 31, 2024, was $122 million. The fair value of the shares held by Sanborn was $102 million at December 31, 2024. During 2024, Jackson declared a dividend of $62 million. 2. Assume that Sanborn sold the stock on January 2, 2025 for $114 million. Prepare the journal entries Sanborn would use to record the sale. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). View transaction list Journal entry worksheet
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On June 1, 2023, Andre Company and Agassi Company merged to form Lancaster Inc. A total of 800,000 shares were issued to complete the merger. The new corporation reports on a calendar-year basis. On April 1, 2025, the company issued an additional 400,000 shares of stock for cash. All 1,200,000 shares were outstanding on December 31, 2025. Lancaster Inc. also issued $600,000 of 20-year, 8% convertible bonds at par on July 1, 2025. Each $1,000 bond converts to 40 shares of common at any interest date. None of the bonds have been converted to date. Lancaster Inc. is preparing its annual report for the fiscal year ending December 31, 2025. The annual report will show earnings per share figures based upon a reported after-tax net income of $1,540,000. (The tax rate is 20%.) Determine the following for 2025. a. The number of shares to be used for calculating: (Round answers to O decimal places, e.g. 2,500.) 1. 2. Basic earnings per share N Diluted earnings per share 1. Basic earnings per…
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