Prior to being united in a business combination, Big Inc. and Little Inc. had the following information:                                                                                         Big                 Little                         Common Stock ($1 par value)           $ 180,000        $  45,000                         Additional Paid-in capital                       90,000            20,000                         Retained earnings                                  300,000         110,000               Big issues 51,000 new shares of its common stock valued at $3 per share for all the outstanding stock of Little.  Immediately afterward, what are consolidated Additional Paid-in Capital and Retained Earnings?

Q: Computing consolidated earnings per share (EPS) Assume the following facts about a parent and its…

A: Given that, Net income of ; Parent = $200,000  Subsidiary = $47,000

Q: The following six accounts appear in the 2018 financial statements of Poplar and its 100%-owned…

A:

Q: On January 1, Year 5, Pic Company acquired 7,500 ordinary shares of Sic Company for $717,000. On…

A: Investment in Associates and Joint venture and SubsidiaryEquity Accounting method - This method is…

Q: Prior to being united in a business combination, Atkins, Inc., and Waterson Corporation had the…

A: Given information is: Prior to being united in a business combination, Atkins, Inc., and Waterson…

Q: Data for Henry Company and Mayer Services are given in the following table. Henry Company is…

A: Answer a Ratio of exchange in market price= [$45*1.25]/$50= 1.125 Answer b Henry Company EPS=…

Q: Prior to being united in a business combination, Taunton Inc. and Eubanks Corp. had the following…

A: Shares: Shares are the units of the total stock of a company that show the fractional ownership of…

Q: Consider the following premerger information about Firm X and Firm Y: Total earnings Shares…

A: Since since no debt to the firms,Total assets of a firm = Number of shares * book value Existing…

Q: Determine the consolidated balances which Peris would present on their consolidated balance sheet…

A: There are two companies at the time of consolidation. These are parent company and subsidiary…

Q: Prior to being united in a business combination, Atkins, Inc., and Waterson Corporation had the…

A: The additional paid-in capital is the value of share capital above its par value. The additional…

Q: Consider the following premerger information about Firm X and Firm Y: Firm X Firm Y $79,000 $14,000…

A: Mergers refer to when two existing companies merge into one new company. The companies merge because…

Q: If Company A invested $70,000 cash in Company B (a newly created subsidiary) with Company B issuing…

A: Any cash investment in the subsidiary increases the investment asset and decreases the cash balance…

Q: Prepare the journal entries on HC Corporation's books to account for the business combination.

A: The journal entries for the business combination requires all the entries which has occurred and all…

Q: merger. Construct the postmerger balance sheet for Firm X assuming the use of the purchase…

A: When two existing companies join to form one new company, it is called merger. The companies merge…

Q: Prior to a potential merger Veggie Co has $6,150 in total earnings with 1800 shares outstanding at a…

A: Merger of companies means acquisition of one company by another company or combining 2 entities into…

Q: The following are the balances of LITTLE Company and BOY Company as of January 1, 20x1. Dianne…

A: Step 1 Any excess of purchase consideration paid by acquirer to acquire over net assets, then it…

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.