Chapter 1, Problem 1.5P

Jack Company is a Corporation that was organized on July 1, 2015. The June 30, 2020, balance sheet for Jack is as follows:

The experience of other corn panics over die last several years indicates that die machinery and equipment can be sold at 130% of its book value.

An analysis of the accounts receivable indicates that the realizable value is 5925.000. An independent appraisal made in June 2020 values the land at $70,000. Using the lower of-cost of or-market rule, inventory is to be restated at $1,200,000.

Callaway Corpora ion plans to exchange 18.000 of its shares for the 120.000 Jack shares.

During June 2020, the lair value of a share of always Corporation is $270. Equations costs are $12,000.

The stack holder’s equity account balances of always Corporation as of June 30. 2015, are as follows: