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Peace Computer Corporation acquired 75 percent of Symbol Software Company's stock on January 2, 20X3, by issuing bonds with a par value of $50,000 and a fair value of $67.500 in exchange for the shares. Summarized balance sheet data presented for the companies just before the acquisition follow:

Peace Computer Corporation acquired 75 percent of Symbol Software Company's stock on January 2, 20X3, by issuing bonds with a par value of $50,000 and a fair value of $67.500 in exchange for the shares. Summarized balance sheet data presented for the companies just before the acquisition follow:

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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E3-8 Subsidiary Acquired with Bonds Peace Computer Corporation acquired 75 percent of Symbol Software Company's stock on January 2, 20X3, by issuing bonds with a par value of $50,000 and a fair value of $67,500 in exchange for the shares. Summarized balance sheet data presented for the companies just before the acquisition follow: Cash Other Assets Total Debits Current Liabilities Common Stock Retained Earnings Total Credits Peace Computer Corporation Book Value $200,000 400,000 $600,000 $ 100,000 300,000 200,000 $600,000 Fair Valne $200,000 400,000 100,000 Required Prepare a consolidated balance sheet immediately following the acquisition. Symbol Software Company Book Valne $ 50,000 120,000 $170,000 $ 80.000 50,000 40,000 $170,000 Fair Value $ 50,000 120,000 80,000
Transcribed Image Text:E3-8 Subsidiary Acquired with Bonds Peace Computer Corporation acquired 75 percent of Symbol Software Company's stock on January 2, 20X3, by issuing bonds with a par value of $50,000 and a fair value of $67,500 in exchange for the shares. Summarized balance sheet data presented for the companies just before the acquisition follow: Cash Other Assets Total Debits Current Liabilities Common Stock Retained Earnings Total Credits Peace Computer Corporation Book Value $200,000 400,000 $600,000 $ 100,000 300,000 200,000 $600,000 Fair Valne $200,000 400,000 100,000 Required Prepare a consolidated balance sheet immediately following the acquisition. Symbol Software Company Book Valne $ 50,000 120,000 $170,000 $ 80.000 50,000 40,000 $170,000 Fair Value $ 50,000 120,000 80,000
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