Vipul b Don't upload any image please Exercise 1-23 (Algo) Reporting Income LO 1-5On July 1, 20X2, Alan Enterprises merged with Terry Corporation through an exchange of stock and the subsequent liquidation ofTerry, Alan issued 216,000 shares of its stock to effect the combination. The book values of Terry's assets and liabilities were equal totheir fair values at the date of combination, and the value of the shares exchanged was equal to Cherry's book value. Informationrelating to income for the companies is as follows:Net Income:Alan EnterprisesTerry Corporation20x1$4,530,0001,380,000Net incomeEarnings per shareAlan Enterprises had 1,130,000 shares of stock outstanding prior to the combination. Remember that when calculating earnings pershare (EPS) for the year of the combination, the shares issued in the combination were not outstanding for the entire year.20X1January 1-June 30, July 1-December20x231, 20x2$ 3,618,000.Required:Compute the net income and earnings-per-share amounts that would be reported in Alan's 20X2 comparative income statements forboth 20X2 and 20X1.Note: Round earnings per share to 2 decimal places.$ 2,610,000702,00020X2

Net income is the profit a company earns after deducting all expenses from its total revenues during…

Answered: Required: Compute the net income and…

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter4: Corporations: Organization And Capital Structure

Section: Chapter Questions

Problem 26P

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Problem 2At December 31, 20x4, Baby Corporation acquired all of Mommy Enterprises’ common stock. At that date, the book Values and fair values of Mommy’s identifiable assets and liabilities were identical. Balance sheet data for the individual companies and the consolidated entity on January 1, 20x5, are as follows: 1.What balance will be reported as accounts payable in the consolidated balance sheeta. P10,000b. P55,000c. P 75,000d. P120,000 2. What is the par value of baby common stock outstanding at January 1, 20x5? a. No-par b. P30,000c. P100,000d. P130,000
1.
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Solution in good accounting form
What is the Consolidated/Group Net Income for 20x1, considering the intercompany transactionsA. 356,500 B. 362,200 C. 363,075 D. 387,375
10 10 Exercise 1-23 (Static) Reporting Income LO 1-5 On July 1, 20x2, Alan Enterprises merged with Terry Corporation through an exchange of stock and the subsequent liquidation of Terry, Alan issued 200,000 shares of its stock to effect the combination. The book values of Terry's assets and liabilities were equal to their fair values at the date of combination, and the value of the shares exchanged was equal to Cherry's book value. Information relating to income for the companies is as follows: Net Income Alan Enterprises Terry Corporation 20x1 $4,460,000 1,300,000 Net income Eamings per share Alan Enterprises had 1,000,000 shares of stock outstanding prior to the combination. Remember that when calculating earnings per share (EPS) for the year of the combination, the shares issued in the combination were not outstanding for the entire year 2001 January 1-June 10, 20x2 $2,500,000 492.000 Required: Compute the net income and earnings-per-share amounts that would be reported in Alan's…
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E 1-5 Journal entries to record an acquisition with direct costs and fair value/book value differences On January 1, Pop Corporation pays $400,000 cash and also issues 36,000 shares of $10 par common stock with a market value of $660,000 for all the outstanding common shares of Son Corporation. In addition, Pop pays $60,000 for registering and issuing the 36,000 shares and $140,000 for the other direct costs of the business combination, in which Son Corporation is dissolved. Summary balance sheet information for the companies immediately before the merger is as follows (in thousands): Pop Book Value Son Book Value Son Fair Value Cash $ 700 $ 80 $ 80 Inventories 240 160 200 Other current assets 60 40 40 Plant assets—net 520 360 560 Total assets $1,520 $640 $880 Current liabilities $ 320 $ 60 $ 60 Other liabilities 160 100 80 Common stock, $10 par 840 400…
SOLUTION IN GOOD ACCOUNTING FORM In the December 31, year 1 consolidated balance sheet, noncontrolling interest should be reported at
13 ABC Corp. acquired all the assets and liabilities of XYZ Corporation by issuing shares of its common stock. On January 1, 2020, partial balance sheet data for the companies prior to the business combination and immediately following the combination is provided. ABC Corp. XYZ Corp. Combination Cash 65,000 25,000 90,000 Accounts receivable 72,000 20,000 94,000 Inventory 33,000 45,000 88,000 PPE (net) 400,000 150,000 650,000 Goodwill ? Total Assets 570,000 240,000 ? Accounts payable 50,000 25,000 75,000 Bonds payable 250,000 100,000 350,000 Common stock, P2 par 100,000 25,000 160,000 Share Premium 65,000 20,000 245,000 Retained earnings 105,000 70,000 ? Total Liab and Equity 570,000 240,000 ? What is the fair value of the net assets held by XYZ Corp at the date of combination? Group of answer choices 115,000 227,000…
6
Chapter 2. 1. On 12/31, Choco acquired all assets and liabilities of Cake by issuing 40,000 shares of its common stock when the market value (=fair value) is $32/share and this combination is a statutory merger (Cake was dissolved). Choco has common stock with $15 par, 50,000 shares outstanding and Cake has $5 par, 60,000 shares outstanding Choco Book Values Cake Book Values Cake Fair Values Cash and Receivable 350,000 180,000 170,000 Inventories 250,000 100,000 150,000 Land 700,000 120,000 240,000 Building and equipment 600,000 600,000 900,000 Patented technology 100,000 0 60,000 Accounts payable 300,000 120,000 150,000 Long-term debt 0 400,000 350,000 Common stock 750,000 300,000 Additional paid in capital 500,000 60,000 Retained earnings 12/31 450,000 120,000 Revenues 350,000 160,000 Expenses 310,000…

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Required: Compute the net income and earnings-per-share amounts that would be reported in Alan's 20X2 comparative income statements for both 20X2 and 20X1. Note: Round earnings per share to 2 decimal places. Net income Earnings per share 20X1 20X2