Wooden Reed Inc. (WRI) issued 30,000 voting common shares to acquire all of the assets and liabilities of Creative Instrument Ltd. (CIL). On the acquisition date, WRI's shares were trading at $22per share. After the transaction, CIL owned 20% of WRI's outstanding shares. The following information relates to CIL on the acquisition date:CashAccounts receivableInventoryProperty, plant, and equipment (net)Current liabilitiesLong-term debtCommon sharesRetained earningsWRIS$S75,000180,000220,000880,0001,355,00075,000235,000100,000945,000$ 1,355,000carrying value CIL$ 35,00067,500carrying value125,000350,000$ 577,500$ 25,000125,000165,000262,500$ 577,500CILfair value$ 35,00069,500147,000388,00025,000125,000Based on the information provided, which of the amounts below correctly reflect amounts that would appear on WRI's statement of financial position?

Consolidation is an activity in which financial statements of a parent and its subsidiary should be…

Wooden Reed Inc. (WRI) issued 30,000 voting common shares to acquire all of the assets and liabilities of Creative Instrument Ltd. (CIL). On the acquisition date, WRI's shares were trading at $22 per share. After the transaction, CIL owned 20% of WRI's outstanding shares. The following information relates to CIL on the acquisition date:

Wooden Reed Inc. (WRI) issued 30,000 voting common shares to acquire all of the assets and liabilities of Creative Instrument Ltd. (CIL). On the acquisition date, WRI's shares were trading at $22 per share. After the transaction, CIL owned 20% of WRI's outstanding shares. The following information relates to CIL on the acquisition date:

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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