Advanced Accounting
14th Edition
ISBN: 9781260247824
Author: Joe Ben Hoyle, Thomas F. Schaefer, Timothy S. Doupnik
Publisher: RENT MCG
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Textbook Question
Chapter 2, Problem 12P
On June 1, Cline Co. paid $800,000 cash for all of the issued and outstanding common stock of Renn Corp. The carrying amounts for Renn’s assets and liabilities on June 1 follow:
| Cash | $150,000 |
| 180,000 | |
| Capitalized software costs | 320,000 |
| 100,000 | |
| Liabilities | (130,000) |
| Net assets | $620,000 |
On June 1, Renn’s accounts receivable had a fair value of $140,000. Additionally, Renn’s in-process research and development was estimated to have a fair value of $200,000. All other items were stated at their fair values. On Cline’s June 1 consolidated
- a. $320,000
- b. $120,000
- c. $80,000
- d. $20,000
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Chapter 2 Solutions
Advanced Accounting
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