Partial balance sheet for the companies prior to the business combination and immediately following the nation is provided: Parent 65,000 72,000 33,000 Sub 25,000 20,000 45,000 140,000 10,000 240,000 Consolidated 60,000 94,000 88,000 650,000 Cash Accounts receivable Inventory Buildings Goodwil Total assets 400,000 570,000 Accounts payable Bonds payable Common stock, P2 par Share premium 50,000 250,000 100,000 65,000 25,000 100,000 25,000 20,000 75,000 350,000 160,000 Retained earnings 105.000 70.000 100 000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Parent Corporation acquired all the identifiable net assets of Sub Company by issuing ordinary shares on January 2.
2022. Partial balance sheet for the companies prior to the business combination and immediately following the
combination is provided:
Parent
65,000
Consolidated
60,000
Sub
25,000
20,000
45,000
140,000
10,000
240,000
Cash
Accounts receivable
72,000
94,000
Inventory
Buildings
Goodwill
33,000
400,000
88,000
650,000
Total assets
570,000
75.000
350,000
Accounts payable
Bonds payable
Common stock, P2 par
Share premium
Retained earnings
Total liabilities and equities
50,000
25,000
100,000
25,000
20,000
70,000
240,000
250,000
100,000
160,000
65,000
105,000
570,000
100,000
The only consideration transferred is the issuance of shares with fair value of P8. Parent also paid business
combination expenses, share issue costs are twice the amount of indirect costs. Parent and Sub are SMES.
Transcribed Image Text:Parent Corporation acquired all the identifiable net assets of Sub Company by issuing ordinary shares on January 2. 2022. Partial balance sheet for the companies prior to the business combination and immediately following the combination is provided: Parent 65,000 Consolidated 60,000 Sub 25,000 20,000 45,000 140,000 10,000 240,000 Cash Accounts receivable 72,000 94,000 Inventory Buildings Goodwill 33,000 400,000 88,000 650,000 Total assets 570,000 75.000 350,000 Accounts payable Bonds payable Common stock, P2 par Share premium Retained earnings Total liabilities and equities 50,000 25,000 100,000 25,000 20,000 70,000 240,000 250,000 100,000 160,000 65,000 105,000 570,000 100,000 The only consideration transferred is the issuance of shares with fair value of P8. Parent also paid business combination expenses, share issue costs are twice the amount of indirect costs. Parent and Sub are SMES.
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