QuestionOn January 1, 2022, X acquired 100% of the voting common stocks of55000 for Y's stockholders. Also, X issued 70000 common stocks of $1 par, $4 FMV. Businesscombination costs 20000 direct and 10000 indirect costs.The balance sheets of X and Y on the date of BC are:X at Cost110000700001200002000001000006000007000032000080000130000600000CashAccount ReceivablesInventoryBuildingEquipmentTotal AssetsAccount PayableCommon StocksPaid-In-CapitalR.ETotal Liabilities and Stockholders' EquityRequired:Y at cost600004000050000100000500003000003000015000050000700003000001 - Complete the accounting procedures of business combination.2- Prepare consolidated balance sheet of Y after BC.Y at the FMV6000035000400001400007000034500030000

Purchase Consideration: The total purchase consideration is the sum of the legal merger cost and the…

Answered: Required: 1- Complete the accounting…

Required: 1- Complete the accounting procedures of business combination. 2- Prepare consolidated balance sheet of Y after BC.

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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