The number of shares issued when market value of common stock is $25 per share. Introduction: Common stock is a security or investment that represents ownership in the company. It is the part of company’s capital that provides shareholders a right to share profits and vote on company’s policies and composition of board of directors.

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Answer 1

Question

Chapter 1, Problem 1.20E

a.

To determine

To calculate: The number of shares issued when market value of common stock is $25 per share.

Introduction: Common stock is a security or investment that represents ownership in the company. It is the part of company’s capital that provides shareholders a right to share profits and vote on company’s policies and composition of board of directors.

b.

To determine

To calculate: The par value per share of common stock.

Introduction: Common stock is a security or investment that represents ownership in the company. It is the part of company’s capital that provides shareholders a right to share profits and vote on company’s policies and composition of board of directors.

c.

To determine

To calculate: The amount of goodwill at the time of business combination.

Introduction: Goodwill is an intangible asset that specifies the market value of the company. It includes the company’s brand value, customer base and relation, and relationship with employees. It is not separately defined and has a contractual or legal right on the company.

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How much is the total assets at the date of acquistion ?

Required information On January 1, 20X2, Power Company acquired 80 percent of Strong Company's outstanding stock for cash. The fair value of the noncontrolling interest was equal to a proportionate share of the book value of Strong Company's net assets at the date of acquisition. Selected balance sheet data at December 31, 20X2 are as follows: Total Assets Liabilities Common Stock Retained Earnings Total Liabilities & Stockholders' Equity Multiple Choice O $35,200 Based on the preceding information, what amount should be reported as noncontrolling interest in net assets in Power Company's December 31, 20X2, consolidated balance sheet? $48,200 $76,800 Power $ 564,000 O $112,800 180,000 150,000 234,000 $ 564,000 Strong $ 216,000 65,000 80,000 96,000 $ 241,000

Parent Corporation acquired all the identifiable net assets of Sub Company by issuing ordinary shares on January 2. 2022. Partial balance sheet for the companies prior to the business combination and immediately following the combination is provided: Parent 65,000 Consolidated 60,000 Sub 25,000 20,000 45,000 140,000 10,000 240,000 Cash Accounts receivable 72,000 94,000 Inventory Buildings Goodwill 33,000 400,000 88,000 650,000 Total assets 570,000 75.000 350,000 Accounts payable Bonds payable Common stock, P2 par Share premium Retained earnings Total liabilities and equities 50,000 25,000 100,000 25,000 20,000 70,000 240,000 250,000 100,000 160,000 65,000 105,000 570,000 100,000 The only consideration transferred is the issuance of shares with fair value of P8. Parent also paid business combination expenses, share issue costs are twice the amount of indirect costs. Parent and Sub are SMES.

Answer 2

Question

Chapter 1, Problem 1.20E

a.

To determine

To calculate: The number of shares issued when market value of common stock is $25 per share.

Introduction: Common stock is a security or investment that represents ownership in the company. It is the part of company’s capital that provides shareholders a right to share profits and vote on company’s policies and composition of board of directors.

b.

To determine

To calculate: The par value per share of common stock.

Introduction: Common stock is a security or investment that represents ownership in the company. It is the part of company’s capital that provides shareholders a right to share profits and vote on company’s policies and composition of board of directors.

c.

To determine

To calculate: The amount of goodwill at the time of business combination.

Introduction: Goodwill is an intangible asset that specifies the market value of the company. It includes the company’s brand value, customer base and relation, and relationship with employees. It is not separately defined and has a contractual or legal right on the company.

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Answer 3

Question

Chapter 1, Problem 1.20E

a.

To determine

To calculate: The number of shares issued when market value of common stock is $25 per share.

Introduction: Common stock is a security or investment that represents ownership in the company. It is the part of company’s capital that provides shareholders a right to share profits and vote on company’s policies and composition of board of directors.

b.

To determine

To calculate: The par value per share of common stock.

Introduction: Common stock is a security or investment that represents ownership in the company. It is the part of company’s capital that provides shareholders a right to share profits and vote on company’s policies and composition of board of directors.

c.

To determine

To calculate: The amount of goodwill at the time of business combination.

Introduction: Goodwill is an intangible asset that specifies the market value of the company. It includes the company’s brand value, customer base and relation, and relationship with employees. It is not separately defined and has a contractual or legal right on the company.

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Answer 4

Question

Chapter 1, Problem 1.20E

a.

To determine

To calculate: The number of shares issued when market value of common stock is $25 per share.

Introduction: Common stock is a security or investment that represents ownership in the company. It is the part of company’s capital that provides shareholders a right to share profits and vote on company’s policies and composition of board of directors.

b.

To determine

To calculate: The par value per share of common stock.

Introduction: Common stock is a security or investment that represents ownership in the company. It is the part of company’s capital that provides shareholders a right to share profits and vote on company’s policies and composition of board of directors.

c.

To determine

To calculate: The amount of goodwill at the time of business combination.

Introduction: Goodwill is an intangible asset that specifies the market value of the company. It includes the company’s brand value, customer base and relation, and relationship with employees. It is not separately defined and has a contractual or legal right on the company.

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Answer 5

Chapter 1, Problem 1.20E

a.

To determine

To calculate: The number of shares issued when market value of common stock is $25 per share.

Introduction: Common stock is a security or investment that represents ownership in the company. It is the part of company’s capital that provides shareholders a right to share profits and vote on company’s policies and composition of board of directors.

b.

To determine

To calculate: The par value per share of common stock.

Introduction: Common stock is a security or investment that represents ownership in the company. It is the part of company’s capital that provides shareholders a right to share profits and vote on company’s policies and composition of board of directors.

c.

To determine

To calculate: The amount of goodwill at the time of business combination.

Introduction: Goodwill is an intangible asset that specifies the market value of the company. It includes the company’s brand value, customer base and relation, and relationship with employees. It is not separately defined and has a contractual or legal right on the company.

Answer 6

Chapter 1, Problem 1.20E

a.

To determine

To calculate: The number of shares issued when market value of common stock is $25 per share.

Introduction: Common stock is a security or investment that represents ownership in the company. It is the part of company’s capital that provides shareholders a right to share profits and vote on company’s policies and composition of board of directors.

Answer 7

Chapter 1, Problem 1.20E

a.

To determine

To calculate: The number of shares issued when market value of common stock is $25 per share.

Introduction: Common stock is a security or investment that represents ownership in the company. It is the part of company’s capital that provides shareholders a right to share profits and vote on company’s policies and composition of board of directors.

Answer 8

b.

To determine

To calculate: The par value per share of common stock.

Introduction: Common stock is a security or investment that represents ownership in the company. It is the part of company’s capital that provides shareholders a right to share profits and vote on company’s policies and composition of board of directors.

Answer 9

b.

To determine

To calculate: The par value per share of common stock.

Introduction: Common stock is a security or investment that represents ownership in the company. It is the part of company’s capital that provides shareholders a right to share profits and vote on company’s policies and composition of board of directors.

Answer 10

c.

To determine

To calculate: The amount of goodwill at the time of business combination.

Introduction: Goodwill is an intangible asset that specifies the market value of the company. It includes the company’s brand value, customer base and relation, and relationship with employees. It is not separately defined and has a contractual or legal right on the company.

Answer 11

c.

To determine

To calculate: The amount of goodwill at the time of business combination.

Introduction: Goodwill is an intangible asset that specifies the market value of the company. It includes the company’s brand value, customer base and relation, and relationship with employees. It is not separately defined and has a contractual or legal right on the company.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 1 - What types of circumstances would encourage...Ch. 1 - How would the decision to dispose of a segment of...Ch. 1 - Prob. 1.3Q Ch. 1 - Prob. 1.4Q Ch. 1 - Prob. 1.5Q Ch. 1 - Prob. 1.6Q Ch. 1 - Prob. 1.8Q Ch. 1 - Prob. 1.9Q Ch. 1 - Prob. 1.10Q Ch. 1 - Prob. 1.11Q

Solution Summary: The author explains that common stock is a security or investment that represents ownership in the company.

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