[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. 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 $ (313,800) $ (182,000) 98,000 172,000 (112,000) 176,000 178,000 220,000 (150,000) 64,000 $ 64,000 156,000 182,000 172,000 198,000 414,000 216,000 98,000 80,000 (514,000) (360,000) (340,000) (310,000) (74,000) (8,200) (30,000) 244,000 80,000 On its acquisition-date consolidated balance sheet, what amount should TruData report as retained earnings as of July 17
[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. 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 $ (313,800) $ (182,000) 98,000 172,000 (112,000) 176,000 178,000 220,000 (150,000) 64,000 $ 64,000 156,000 182,000 172,000 198,000 414,000 216,000 98,000 80,000 (514,000) (360,000) (340,000) (310,000) (74,000) (8,200) (30,000) 244,000 80,000 On its acquisition-date consolidated balance sheet, what amount should TruData report as retained earnings as of July 17
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On its acquisition-date consolidated balance sheet, what amount should TruData report as retained earnings as of July 1?
Multiple Choice
O $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 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
Webstat
Trubata
Book Values Book Values
$ (313,800) $ (182,000)
172,000
98,000
(112,000) (150,000)
176,000
64,000
178,000
156,000
220,000
182,000
414,000
216,000
80,000
(360,000)
(74,000)
(30,000)
98,000
(514,000)
(310,000)
(8,200)
Webstat
Fair Values
$
64,000
172,000
198,000
244,000
80,000
(340,000)
On its acquisition-date consolidated balance sheet, what amount should TruData report as retained earnings as of July 1?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb9c31f8f-5fa1-4391-b22b-948e453c2c73%2F26e00ac5-4f42-4045-af66-2af478c9162b%2F1d06lyi_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
On July 1, TruData Company issues 11,400 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.
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
Webstat
Trubata
Book Values Book Values
$ (313,800) $ (182,000)
172,000
98,000
(112,000) (150,000)
176,000
64,000
178,000
156,000
220,000
182,000
414,000
216,000
80,000
(360,000)
(74,000)
(30,000)
98,000
(514,000)
(310,000)
(8,200)
Webstat
Fair Values
$
64,000
172,000
198,000
244,000
80,000
(340,000)
On its acquisition-date consolidated balance sheet, what amount should TruData report as retained earnings as of July 1?
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