On its acquisition-date consolidated balance sheet, what amount should TruData report as retained earnings as of July 1?Multiple ChoiceO $112.000.$253,800.$322.000$635.800. Required information[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 $40 fair value inexchange for all of Webstat Company's outstanding voting shares. Webstat's precombination book and fair values areshown below along with book values for TruData's accounts.Revenues (1/1 to 7/1)Expenses (1/1 to 7/1)Retained earnings, 1/1Cash and receivables.InventoryPatented technology (net)LandBuildings and equipment (net)LiabilitiesCommon stockAdditional paid-in capitalWebstatTrubataBook Values Book Values$ (313,800) $ (182,000)172,00098,000(112,000) (150,000)176,00064,000178,000156,000220,000182,000414,000216,00080,000(360,000)(74,000)(30,000)98,000(514,000)(310,000)(8,200)WebstatFair Values$64,000172,000198,000244,00080,000(340,000)On its acquisition-date consolidated balance sheet, what amount should TruData report as retained earnings as of July 1?

Option B is the correct answer: (B)$ 253,800 Formula for retained earnings as of July 1 is as…

Answered: [The following information applies to…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 98.3C

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At the time of acquisition X & Y Co., stock issue expected cost expenses OMR 48,000. Finally, acquisition cost was OMR 64,000. How much will record in the income statement. Select one: a. OMR 48,000 b. OMR 64,000 c. OMR 16,000 d. OMR 112,000
Using the proportionate basis or partial goodwill method, compute the consolidated retained earnings on January 1.A. P 48,000 C. P 84,900B. P52,100 D. P 89,000
After the business combination on the basis of full-goodwill approach, what amount of inventory will be reported? a. P179,000 b. P200,000 c. P210,500 d. P215,000
Determine the following balances that would appear in the consolidated financial statements of P COMPANY and S COMPANY:1. Total Assets2. Total Liabilities3. Equity
What is the amount of pre-acquisition earnings on the acquisition date consolidated income statement if the parent acquires 90 percent of the subsidiary’s stock and the following income statement accounts exist at the acquisition date? Parent Subsidiary Sales P250,000 P60,000 Cost of Goods Sold 120,000 12,000 Depreciation Expense 10,000 5,000 Operating Expenses 40,000 8,000 Income Tax Expense 32,000 14,000 2. Using the same information in No. 1, what is the imputed value of a subsidiary if the parent pays P56,000 for 80 percent of the subsidiary’s stock? Use the following information for question 3 and 4: Marksman acquired 100 percent of Tribal Transit for P275,000. At the date of acquisition, Fast Transit…
CASE 1 Presented below are the financial balances for the BonGiovi Company and the Terens Company as of December 31, 2017, immediately before BonGiovi acquired Terens. Also included are the fair values for Terens Company's net assets at that date (thousands of US$). Terens Compute consolidated retained earnings as a result of this acquisition. A) $1,160. Compute consolidated revenues immediately following the acquisition. BonGiovi Book Value Terens Book Value B) $1,170. 31.12.2017 31.12.2017 Fair Value 31.12.2017 C) $1,265. Cash 870 240 240 Receivables 660 600 600 D) $1,280. Inventory 1,230 420 580 Land 1,800 260 250 E) $1,650. Buildings (Net) 1,800 540 650 Equipment (net) 660 380 400 Accounts Payable (570) (240) (240) Accrued expenses (270) (60) Long term Liabilities (2,700) (1,020) (60) (1,120) Common Stock (1,980) A) $3,540. ($20par) B) $2,880. Common Stock ($5 (420) par) C) $1,170. Additional paid in (210) (180) capital D) $1,650. Retained earnings (1,170) (480) Revenue (2,880)…
What amount will be shown on the July 1, 20X1, consolidated balance sheet for the following: Total equity Now assume this transaction had been completed prior to the elimination of poolings of interest, and that the pooling method had been used to record the acquisition. Redo requirements 1 and 2: Total assets Total liabilities Total equity
Gg.162.
How much is the consolidated profit in 2021?A. 301,000B. 336,000C. 310,000D. 320,000
Using the proportionate basis or partial goodwill method, compute the equity holders of parent (or controlling interest) retained earnings on January 1:A. P 48,000 C. P 84,900B. P52,100 D. P 89,000
a. Determine the goodwill or gain on bargain purchase from the above acquisition if the NCI is to be valued on a proportionate b. Determine the balance of the NCI in FC’s consolidated financial statements.
On January 1, 2012, Aspen Company acquired 80 percent of Birch Company's outstanding voting stock for $438,000. Birch reported a $457,500 book value and the fair value of the noncontrolling interest was $109,500 on that date. Also, on January 1, 2013, Birch acquired 80 percent of Cedar Company for $200,000 when Cedar had a $205,000 book value and the 20 percent noncontrolling interest was valued at $50,000. In each acquisition, the subsidiary's excess acquisition-date fair over book value was assigned to a trade name with a 30-year life. These companies report the following financial information. Investment income figures are not included. Sales: Aspen Company Birch Company Cedar Company Expenses: Aspen Company Birch Company Cedar Company Dividends declared: Aspen Company Birch Company Cedar Company 2012 $ 632,500 261,250 Not available $ 542,500 200,000 Not available $15,000 8,000 Not available 2013 2014 $747,500 327,250 $822,500 416,900 185,900 292,600 $522,500 $750,000 261,000…

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