Puzzle Corporation acquired 100 percent of the common stock of Solver Company by issuing 10,000 shares of $10 par common stock with a market value of $60 per share. Summarized balance sheet data for the two companies immediately preceding the acquisition are as follows: Puzzle Corporation Solver Corporation Book Value Fair Value Book Value Fair Value Total Assets $ 1,200,000 $ 1,500,000 $ 900,000 $ 1,300,000 Total Liabilities $ 800,000 $ 700,000 $ 600,000 $ 750,000 Total Stockholders Equity 400,000 300,000 $ 1,200,000 $ 900,000 Required: Determine the dollar amounts to be presented in the consolidated balance sheet for (1) total assets, (2) total liabilities, and (3) total stockholders' equity.
Puzzle Corporation acquired 100 percent of the common stock of Solver Company by issuing 10,000 shares of $10 par common stock with a market value of $60 per share. Summarized balance sheet data for the two companies immediately preceding the acquisition are as follows: Puzzle Corporation Solver Corporation Book Value Fair Value Book Value Fair Value Total Assets $ 1,200,000 $ 1,500,000 $ 900,000 $ 1,300,000 Total Liabilities $ 800,000 $ 700,000 $ 600,000 $ 750,000 Total Stockholders Equity 400,000 300,000 $ 1,200,000 $ 900,000 Required: Determine the dollar amounts to be presented in the consolidated balance sheet for (1) total assets, (2) total liabilities, and (3) total stockholders' equity.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Puzzle Corporation acquired 100 percent of the common stock of Solver Company by issuing 10,000 shares of $10 par common stock with a market value of $60 per share. Summarized
| Puzzle Corporation | Solver Corporation | |||
|---|---|---|---|---|
| Book Value | Fair Value | Book Value | Fair Value | |
| Total Assets | $ 1,200,000 | $ 1,500,000 | $ 900,000 | $ 1,300,000 |
| Total Liabilities | $ 800,000 | $ 700,000 | $ 600,000 | $ 750,000 |
| Total |
400,000 | 300,000 | ||
| $ 1,200,000 | $ 900,000 |
Required:
Determine the dollar amounts to be presented in the consolidated balance sheet for (1) total assets, (2) total liabilities, and (3) total stockholders' equity.
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