Required information [The following information applies to the questions displayed below.] On July 1, TruData Company issues 11,200 shares of its common stock with a $5 par value and a $40 fair value in exchange for all of Webstat Company's outstanding voting shares. Webstat's precombination book and fair values are shown below along with book values for TruData's accounts. Revenues (1/1 to 7/1) Expenses (1/1 to 7/1) Retained earnings, 1/1 Cash and receivables Inventory Patented technology (net) Land Buildings and equipment (net) Liabilities Common stock Additional paid-in capital TruData Webstat Webstat Book Values Book Values Fair Values $ (289,000) $ (162,000) 148,000 (138,000) 156,000 90,000 (160,000) 62,000 176,000 156,000 188,000 206,000 86,000 (374,000) (60,000) (32,000) 230,000 408,000 108,000 (506,000) (284,000) (9,000) $ 62,000 180,000 214,000 226,000 86,000 (342,000)
Required information [The following information applies to the questions displayed below.] On July 1, TruData Company issues 11,200 shares of its common stock with a $5 par value and a $40 fair value in exchange for all of Webstat Company's outstanding voting shares. Webstat's precombination book and fair values are shown below along with book values for TruData's accounts. Revenues (1/1 to 7/1) Expenses (1/1 to 7/1) Retained earnings, 1/1 Cash and receivables Inventory Patented technology (net) Land Buildings and equipment (net) Liabilities Common stock Additional paid-in capital TruData Webstat Webstat Book Values Book Values Fair Values $ (289,000) $ (162,000) 148,000 (138,000) 156,000 90,000 (160,000) 62,000 176,000 156,000 188,000 206,000 86,000 (374,000) (60,000) (32,000) 230,000 408,000 108,000 (506,000) (284,000) (9,000) $ 62,000 180,000 214,000 226,000 86,000 (342,000)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:On its acquisition-date consolidated balance sheet, what amount should TruData report as goodwill?
Multiple Choice
O
$0.
$22,000.
$340,000.
$124,000.
![!
Required information
[The following information applies to the questions displayed below.]
On July 1, TruData Company issues 11,200 shares of its common stock with a $5 par value and a $40 fair value in
exchange for all of Webstat Company's outstanding voting shares. Webstat's precombination book and fair values are
shown below along with book values for TruData's accounts.
Revenues (1/1 to 7/1)
Expenses (1/1 to 7/1)
Retained earnings, 1/1
Cash and receivables
Inventory
Patented technology (net)
Land
Buildings and equipment (net)
Liabilities
Common stock
Additional paid-in capital
TruData
Webstat
Book Values Book Values Fair Values
$ (289,000) $ (162,000)
90,000
148,000
(138,000)
156,000
176,000
230,000
408,000
108,000
(506,000)
(284,000)
(9,000)
Webstat
(160,000)
62,000 $ 62,000
156,000
180,000
188,000
214,000
206,000
226,000
86,000
86,000
(374,000)
(342,000)
(60,000)
(32,000)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F04b75ea7-69f8-44f3-a33a-ba23330f1240%2F23f08b07-9bec-4506-bf7e-9a290cfe0dfa%2Fd3yyht_processed.png&w=3840&q=75)
Transcribed Image Text:!
Required information
[The following information applies to the questions displayed below.]
On July 1, TruData Company issues 11,200 shares of its common stock with a $5 par value and a $40 fair value in
exchange for all of Webstat Company's outstanding voting shares. Webstat's precombination book and fair values are
shown below along with book values for TruData's accounts.
Revenues (1/1 to 7/1)
Expenses (1/1 to 7/1)
Retained earnings, 1/1
Cash and receivables
Inventory
Patented technology (net)
Land
Buildings and equipment (net)
Liabilities
Common stock
Additional paid-in capital
TruData
Webstat
Book Values Book Values Fair Values
$ (289,000) $ (162,000)
90,000
148,000
(138,000)
156,000
176,000
230,000
408,000
108,000
(506,000)
(284,000)
(9,000)
Webstat
(160,000)
62,000 $ 62,000
156,000
180,000
188,000
214,000
206,000
226,000
86,000
86,000
(374,000)
(342,000)
(60,000)
(32,000)
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