The trial balances for Walla Corporation and Au Inc. at December 31, Year 4, just before the transaction described below, were asfollows:WallaAu Inc.$288,000$198,000458,000278,000318,00058,000248,000648,000338,000Current assetsLandOther tangible assetsLiabilities608,000508,000408,000Common shares208,000608,000Retained earnings, 1/1/Year 4Revenues808,000628,000ExpensesOn December 31, Year 4, Walla purchased all of the outstanding shares of Au Inc. by issuing 28,000 common shares with a marketvalue of $25 per share. The carrying amounts of Au Inc's assets and liabilities were equal to fair value except for the following:FairValue$508,000LandOther tangible assetsLiabilities316,000338,000Required:What are the balances for the land, other tangible assets, goodwill, investment in common shares, liabilities, common shares, andrevenues after the transaction noted above on. (Leave no cells blank - be certain to enter "0" wherever required.)(a) Walla's separate entity financial statements(b) Au Inc.'s separate entity financial statements(c) Walla's consolidated financial statements(a)Walla separate(b)Au separate(c)Walla consolidatedLandOther tangible assetsGoodwillInvestment in common sharesLiabilitiesCommon sharesRevenues

These statements show the net worth of one company.

The trial balances for Walla Corporation and Au Inc. at December 31, Year 4, just before the transaction described below, were as follows: Walla Au Inc. $288,000 608,000 Current assets $198,000 Land Other tangible assets Liabilities 458,000 278,000 318,000 508,000 408,000 208,000 608,000 808,000 628,000 Common shares 58,000 248,000 648,000 338,000 Retained earnings, 1/1/Year 4 Revenues Expenses On December 31, Year 4, Walla purchased all of the outstanding shares of Au Inc. by issuing 28,000 common shares with a market value of $25 per share. The carrying amounts of Au Inc.'s assets and liabilities were equal to fair value except for the following: Fair Value Land $508,000 Other tangible assets 316,000 338,000 Liabilities

The trial balances for Walla Corporation and Au Inc. at December 31, Year 4, just before the transaction described below, were as follows: Walla Au Inc. $288,000 608,000 Current assets $198,000 Land Other tangible assets Liabilities 458,000 278,000 318,000 508,000 408,000 208,000 608,000 808,000 628,000 Common shares 58,000 248,000 648,000 338,000 Retained earnings, 1/1/Year 4 Revenues Expenses On December 31, Year 4, Walla purchased all of the outstanding shares of Au Inc. by issuing 28,000 common shares with a market value of $25 per share. The carrying amounts of Au Inc.'s assets and liabilities were equal to fair value except for the following: Fair Value Land $508,000 Other tangible assets 316,000 338,000 Liabilities

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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