Other BookmarksHelpSeve & ExltSubmitpurchased all of the outstanding stock of...ding stock of Huron Company, paying $1,035,000 cash. Lake assumed all of the liabilities. Book valueswere:Book Value Fair Value$160,000825,000$145,000625,000200,000200,000 Question 45 - MidTerm, Chapte xOato mlaONCLetonWnepindex frim co oebbrowners0SlounchUrlchttps %253A%252F%252Fims.mheH Netflix* 192.168.23.72/Ed...* https://ee.dde.pr..M GmailB YouTubeMapsTraducirSp eSantaFe Iniciar s..SistMidTerm, Chapters 1-7TB MC Qu. 7-88 Lake Incorporated purchased all of the outstanding stock of...45Lake Incorporated purchased all of the outstanding stock of Huron Company, paying $1,035,000 cashand fair values of acquired assets and liabilities were:Book Value Fair Value$145,000625,000Current assets (net)$160,000Property, plant, equip. (net)Liabilities2:30825,000200,000200,000Lake would record goodwill of:Multiple Choice$250,000.

In acquisition of business assets and liabilities shall be measured at fair market value.

Other Bookmarks Help Seve & Exlt Subm purchased all of the outstanding stock of... ding stock of Huron Company, paying $1,035,000 cash. Lake assumed all of the liabilities. Book values were: Book Value Fair Value $160,000 825,000 $145,000 625,000 200,000 200,000

Other Bookmarks Help Seve & Exlt Subm purchased all of the outstanding stock of... ding stock of Huron Company, paying $1,035,000 cash. Lake assumed all of the liabilities. Book values were: Book Value Fair Value $160,000 825,000 $145,000 625,000 200,000 200,000

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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Johnson Corporation acquired all of the outstanding common stock of Smith Corporation for $11,000,000 in cash. The book value of Smith's net assets (assets minus liabilities) was $7,800,000. The fair values of all of Smith's assets and liabilities were equal to their book values with the following exceptions: Book Value Fair Value $1,100,000 9,400,000 1,200,000 $1,300,000 8,000,000 200,000 Receivables Property, plant, and equipment Intangible assets Required: Calculate the amount paid for goodwill.
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Par Co. Incurred the following costs in order to acquire all of the shares of Sub Co.: • Purchase price (paid in cash) $500,000 • Legal fees $10,000 The business combination agreement states that if the earnings of Sub Co. exceed an average of $2.50 per share over the next two years, Par Co. will make an additional cash payment of $100,000 to the former shareholders of Sub Co. Recent earnings per share for Sub Co. have averaged $1.75. On the date of the business combination, it is not known whether the earnings target will be met. On the date of the combination, the acquisition cost would be calculated as: Multiple Cholce $500,000 $510,000 $610,000 $600,000
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Northern Equipment Corporation purchased all the outstanding common stock of Pioneer Equipment Rental tor $5,550,000 in cash. The book values and fair values of Pioneer's assets and liabilities were: Fair Value 600,000 4,750,000 210,000 (800,000) $ 4,760,000 Book Value $ 700,000 4,050,000 Accounts Receivable Buildings Equipment Accounts Payable 120,000 (800,000) $ 4,070,000 Net assets Required: 1. Calculate the amount Northern Equipment should report for goodwill. Goodwill 2. Record Northern Equipment's acquisition of Pioneer Equipment Rental. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 > Record the acquisition of Pioneer Equipment Rental. Note: Enter debits before credits. Transaction General Journal Debit Credit 1
Mans Company is about to purchase the net assets of Eagle Incorporated, which has the following balance sheet: Assets Accounts receivable $ 60,000 Inventory 100,000 Equipment $ 90,000 Accumulated depreciation (50,000) 40,000 Land and buildings $300,000 Accumulated depreciation (100,000) 200,000 Goodwill 60,000 Total assets $460,000 Liabilities and Stockholders' Equity Bonds payable $ 80,000 Common stock, $10 par 200,000 Paid-in capital in excess of par 100,000 Retained earnings 80,000 Total liabilities and equity $460,000 Mans has secured the following fair values of Eagle's accounts: Inventory $130,000 Equipment 60,000 Land and buildings 260,000 Bonds payable 60,000 Acquisition costs were $20,000. Required: Record the entry for the purchase of…
26. Johnson Corporation acquired all of the outstanding common stock of Smith Corporation for $13,280,000 in cash. The book value of Smith’s net assets (assets minus liabilities) was $9,700,000. The fair values of all of Smith’s assets and liabilities were equal to their book values with the following exceptions: Book Value Fair Value Receivables $ 3,200,000 $ 2,810,000 Property, plant, and equipment 9,900,000 11,490,000 Intangible assets 390,000 1,580,000 Required:Calculate the amount paid for goodwill.
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Northern Equipment Corporation purchased all the outstanding common stock of Pioneer Equipment Rental for $5,600,000 in cash. The book values and fair values of Pioneer’s assets and liabilities were Book Value Fair ValueAccounts Receivable $ 750,000 $ 650,000Buildings 4,100,000 4,800,000Equipment 110,000 200,000Accounts Payable (750,000) (750,000)Net assets $ 4,210,000 $ 4,900,000Required:1. Calculate the amount Northern Equipment should report for goodwill.2. Record Northern Equipment’s acquisition of Pioneer Equipment Rental.
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