Skip to question [The following information applies to the questions displayed below.] On July 1, TruData Company issues 11,400 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. TruData Webstat Webstat Book Values Book Values Fair Values
Skip to question [The following information applies to the questions displayed below.] On July 1, TruData Company issues 11,400 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. TruData Webstat Webstat Book Values Book Values Fair Values
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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[The following information applies to the questions displayed below.]
On July 1, TruData Company issues 11,400 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.
TruData | Webstat | Webstat | |||||||
Book Values | Book Values | Fair Values | |||||||
Revenues (1/1 to 7/1) | $ | (285,000 | ) | $ | (132,000 | ) | |||
Expenses (1/1 to 7/1) | 190,000 | 74,000 | |||||||
(126,000 | ) | (162,000 | ) | ||||||
Cash and receivables | 148,000 | 56,000 | $ | 56,000 | |||||
Inventory | 178,000 | 164,000 | 178,000 | ||||||
Patented technology (net) | 230,000 | 192,000 | 200,000 | ||||||
Land | 414,000 | 206,000 | 246,000 | ||||||
Buildings and equipment (net) | 94,000 | 78,000 | 78,000 | ||||||
Liabilities | (520,000 | ) | (376,000 | ) | (346,000 | ) | |||
Common stock | (312,000 | ) | (60,000 | ) | |||||
Additional paid-in capital | (11,000 | ) | (40,000 | ) | |||||
On its acquisition-date consolidated balance sheet, what amount should TruData report as common stock?
Multiple Choice
-
$60,000.
-
$312,000.
-
$369,000.
-
$372,000.
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