The balance sheets of E Ltd. and J Ltd. on December 30, Year 6, were as follows: Cash and receivables Inventory Plant assets (net) Intangible assets Current liabilities Long-term debt Common shares Retained earnings (deficit) Costs of arranging the acquisition Costs of issuing shares On December 31, Year 6, E Ltd. issued 497 shares, with a fair value of $26 each, for 70% of the outstanding shares of J Ltd. Costs volved in the acquisition, paid in cash, were as follows: Plant assets Long-term debt The carrying amounts of J Ltd.'s net assets were equal to fair values on this date except for the following: Assets Liabilities and Equity Fair value $ 65,700 42,800 E Ltd. was identified as the acquirer in the combination. Required: (a) Prepare the consolidated balance sheet of E Ltd. on December 31, Year 6, under the identifiable net assets method. Assets E Ltd. $ 96,700 58,400 230,800 71,900 24,700 7,400 $ 410,600 $ 109,900 $ $ 30,100 64,400 98,900 45,200 155,800 46,600 91,500 (12,000) $ 410,600 $ 109,900 E Ltd. Consolidated Balance Sheet December 31, Year 6 Liabilities and Equity E Ltd. J Ltd. $ 20,900 9,700 Consolidated Balance Sheet December 31, Year 6 $ 2,640 1,880 $ 4,520 $ $ (b) Prepare the consolidated balance sheet of E Ltd. on December 31, Year 6, under the fair value enterprise method. $ 0 0 0
The balance sheets of E Ltd. and J Ltd. on December 30, Year 6, were as follows: Cash and receivables Inventory Plant assets (net) Intangible assets Current liabilities Long-term debt Common shares Retained earnings (deficit) Costs of arranging the acquisition Costs of issuing shares On December 31, Year 6, E Ltd. issued 497 shares, with a fair value of $26 each, for 70% of the outstanding shares of J Ltd. Costs volved in the acquisition, paid in cash, were as follows: Plant assets Long-term debt The carrying amounts of J Ltd.'s net assets were equal to fair values on this date except for the following: Assets Liabilities and Equity Fair value $ 65,700 42,800 E Ltd. was identified as the acquirer in the combination. Required: (a) Prepare the consolidated balance sheet of E Ltd. on December 31, Year 6, under the identifiable net assets method. Assets E Ltd. $ 96,700 58,400 230,800 71,900 24,700 7,400 $ 410,600 $ 109,900 $ $ 30,100 64,400 98,900 45,200 155,800 46,600 91,500 (12,000) $ 410,600 $ 109,900 E Ltd. Consolidated Balance Sheet December 31, Year 6 Liabilities and Equity E Ltd. J Ltd. $ 20,900 9,700 Consolidated Balance Sheet December 31, Year 6 $ 2,640 1,880 $ 4,520 $ $ (b) Prepare the consolidated balance sheet of E Ltd. on December 31, Year 6, under the fair value enterprise method. $ 0 0 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![The balance sheets of E Ltd. and J Ltd. on December 30, Year 6, were as follows:
Cash and receivables
Inventory
Plant assets (net)
Intangible assets
Current liabilities
Long-term debt
Common shares
Retained earnings (deficit)
Costs of arranging the acquisition
Costs of issuing shares.
On December 31, Year 6, E Ltd. issued 497 shares, with a fair value of $26 each, for 70% of the outstanding shares of J Ltd. Costs
involved in the acquisition, paid in cash, were as follows:
Plant assets
Long-term debt
The carrying amounts of J Ltd.'s net assets were equal to fair values on this date except for the following:
Assets
Liabilities and Equity
J Ltd.
$ 20,900
9,700
71,900
7,400
$ 109,900
$ 64,400
$
30,100
98,900
45,200
155,800
46,600
91,500
(12,000)
$ 410,600 $ 109,900
Fair value
$ 65,700
42,800
E Ltd. was identified as the acquirer in the combination.
Required:
(a) Prepare the consolidated balance sheet of E Ltd. on December 31, Year 6, under the identifiable net assets method.
Assets
E Ltd.
$ 96,700
58,400
230,800
24,700
$ 410,600
E Ltd.
Consolidated Balance Sheet
December 31, Year 6
Liabilities and Equity
E Ltd.
Consolidated Balance Sheet
December 31, Year 6
$ 2,640
1,880
$ 4,520
$
(b) Prepare the consolidated balance sheet of E Ltd. on December 31, Year 6, under the fair value enterprise method.
$
$
$
0
0
0
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F10a40597-f3d0-459b-ac96-740fbb00af94%2F66b7f431-1289-4148-8b4e-95e96982671e%2Fw4fv0w_processed.png&w=3840&q=75)
Transcribed Image Text:The balance sheets of E Ltd. and J Ltd. on December 30, Year 6, were as follows:
Cash and receivables
Inventory
Plant assets (net)
Intangible assets
Current liabilities
Long-term debt
Common shares
Retained earnings (deficit)
Costs of arranging the acquisition
Costs of issuing shares.
On December 31, Year 6, E Ltd. issued 497 shares, with a fair value of $26 each, for 70% of the outstanding shares of J Ltd. Costs
involved in the acquisition, paid in cash, were as follows:
Plant assets
Long-term debt
The carrying amounts of J Ltd.'s net assets were equal to fair values on this date except for the following:
Assets
Liabilities and Equity
J Ltd.
$ 20,900
9,700
71,900
7,400
$ 109,900
$ 64,400
$
30,100
98,900
45,200
155,800
46,600
91,500
(12,000)
$ 410,600 $ 109,900
Fair value
$ 65,700
42,800
E Ltd. was identified as the acquirer in the combination.
Required:
(a) Prepare the consolidated balance sheet of E Ltd. on December 31, Year 6, under the identifiable net assets method.
Assets
E Ltd.
$ 96,700
58,400
230,800
24,700
$ 410,600
E Ltd.
Consolidated Balance Sheet
December 31, Year 6
Liabilities and Equity
E Ltd.
Consolidated Balance Sheet
December 31, Year 6
$ 2,640
1,880
$ 4,520
$
(b) Prepare the consolidated balance sheet of E Ltd. on December 31, Year 6, under the fair value enterprise method.
$
$
$
0
0
0
0
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