Huey Company acquires 100% of the stock of Solar Corporation on january 1, 2019, for $2.400,000 cash. As of that date Solor had the following account balances:Book Value Eair valueCash$630.000$630,000Accounts receivable775.000775,000Inventory350.000400,000Building-net (10 year life)1,000,000 900,.000Equipment-net (5 year life)300.000400.000Land600,000900,000Accounts Payable125.000125,000Bonds Payable (Face amount S1,000,000.due 12/31/2023)2.000.000 2,050,000Common stock500,000Additional paid-in capitalRetained earnings250.000780.000in 2019 and 2020, Solar had net income of $250,000 and $240,000, respectively In addition, Solar paid dividends of $16,000 in both years, Inventory is assumed to be sold in2019. Assume straight line amortization/ depreciation for assets and bonds payable.What amount of Solars single legat entity stockholders' equity will be included in the consolidated balance sheet at date of acquisition?Select oneA $2.064.000B $3,350,000O C.S1,530,000D. S0

Net assets is sum total of common stock, Additional paid in capital, Retained earnings.

pany acquires T00j0 othe stockof 30lar Cor on on jan 2019.1or 0000cash. As of that date Soiar had the folowing account batances Book Value Edir value Cash $630.000 $630,000 Accounts receivable 775.000 775,000 Inventory 350.000 400,000 Building-net (10 year life) Equipment-net (5 year life) 1,000.000 900,000 300,000 400.000 Land 600.000 900,000 Accounts Payable 125.000 125,000 Bonds Payable (Face amount $1,000,000. due 12/31/2023) Common stock Additional paid-in capital Retained earnings 2.000.000 2,050,000 500,000 250.000 780.000 in 2019 and 2020, Solar had net income of $250,000 and $240,000, respectively. In addition, Solar paid dividends of $16,000 in both years, Inventory is assumed to be sold in 2019. Assume straight line amortization/ depreciation for assets and bonds payable. What amount of Solars single legal entity stockholders' equity will be included in the consolidated balance sheet at date of acquisition? Select one A $2.064.000 B. $3.350,000 O C S1,530,000 D.S0

pany acquires T00j0 othe stockof 30lar Cor on on jan 2019.1or 0000cash. As of that date Soiar had the folowing account batances Book Value Edir value Cash $630.000 $630,000 Accounts receivable 775.000 775,000 Inventory 350.000 400,000 Building-net (10 year life) Equipment-net (5 year life) 1,000.000 900,000 300,000 400.000 Land 600.000 900,000 Accounts Payable 125.000 125,000 Bonds Payable (Face amount $1,000,000. due 12/31/2023) Common stock Additional paid-in capital Retained earnings 2.000.000 2,050,000 500,000 250.000 780.000 in 2019 and 2020, Solar had net income of $250,000 and $240,000, respectively. In addition, Solar paid dividends of $16,000 in both years, Inventory is assumed to be sold in 2019. Assume straight line amortization/ depreciation for assets and bonds payable. What amount of Solars single legal entity stockholders' equity will be included in the consolidated balance sheet at date of acquisition? Select one A $2.064.000 B. $3.350,000 O C S1,530,000 D.S0

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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Question

Huey Company acquires 100% of the stock of Solar Corporation on january 1, 2019, for $2.400,000 cash. As of that date Solor had the following account balances:
Book Value Eair value
Cash
$630.000
$630,000
Accounts receivable
775.000
775,000
Inventory
350.000
400,000
Building-net (10 year life)
1,000,000 900,.000
Equipment-net (5 year life)
300.000
400.000
Land
600,000
900,000
Accounts Payable
125.000
125,000
Bonds Payable (Face amount S1,000,000.
due 12/31/2023)
2.000.000 2,050,000
Common stock
500,000
Additional paid-in capital
Retained earnings
250.000
780.000
in 2019 and 2020, Solar had net income of $250,000 and $240,000, respectively In addition, Solar paid dividends of $16,000 in both years, Inventory is assumed to be sold in
2019. Assume straight line amortization/ depreciation for assets and bonds payable.
What amount of Solars single legat entity stockholders' equity will be included in the consolidated balance sheet at date of acquisition?
Select one
A $2.064.000
B $3,350,000
O C.S1,530,000
D. S0

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