The balance sheets of Abdul Co. and Lana Co. on June 30, Year 2, just before the transaction described below, were as follows: Abdul Cash and receivables Inventory. Plant assets (net) Current liabilities Long-term debt Common shares Retained earnings (deficit) Inventory Plant assets $ 93,000 Long-term debt 60,500 236,000 $389,500 $ 65,500 94,250 140,500 89,250 $389,500 Fair Value $10,050 70,100 Lana 33,800 $20,150 8,150 66,350 On June 30, Year 2, Abdul Co. purchased all of Lana Co. assets and assumed all of Lana Co. liabilities for $58,000 in cash. The carryin amounts of Lana's net assets were equal to fair value except for the following: $94,650 $27,600 40,100 40,050 (13,100) $94,650

The balance sheets of Abdul Co. and Lana Co. on June 30, Year 2, just before the transaction described below, were as follows: Abdul Cash and receivables Inventory. Plant assets (net) Current liabilities Long-term debt Common shares Retained earnings (deficit) Inventory Plant assets $ 93,000 Long-term debt 60,500 236,000 $389,500 $ 65,500 94,250 140,500 89,250 $389,500 Fair Value $10,050 70,100 Lana 33,800 $20,150 8,150 66,350 On June 30, Year 2, Abdul Co. purchased all of Lana Co. assets and assumed all of Lana Co. liabilities for $58,000 in cash. The carryin amounts of Lana's net assets were equal to fair value except for the following: $94,650 $27,600 40,100 40,050 (13,100) $94,650

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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