Advanced Accounting
14th Edition
ISBN: 9781260247824
Author: Joe Ben Hoyle, Thomas F. Schaefer, Timothy S. Doupnik
Publisher: RENT MCG
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Question
Chapter 2, Problem 40APB
To determine
Prepare a separate acquisition-date
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Students have asked these similar questions
Bronze Corporation agrees
to acquire the net assets of Wall Corporation on January 1, 20X1. Wall has the following balance sheet on the date of acquisition:
Wall Corporation
Balance Sheet
January 1, 20X1
Assets Liabilities and Equity
Accounts receivable . . . . . . . . . $ 79,000 Current liabilities . . . . . . . . . . . . . . $145,000
Inventory . . . . . . . . . . . . . . . . . . 112,000 Bonds payable . . . . . . . . . . . . . . . 100,000
Other current assets . . . . . . . . . . 55,000 Common stock . . . . . . . . . . . . . . . . 200,000
Equipment (net) . . . . . . . . . . . . . 294,000 Paid-in capital in excess of par . . . 50,000
Trademark . . . . . . . . . . . . . . . . . 30,000 Retained earnings . . . . . . . . . . . . . 75,000
Total assets. . . . . . . . . . . . . . . $570,000 Total liabilities and equity . . . . . $570,000
An appraiser determines that in-process R&D exists and has an estimated value of $14,000.
The appraisal indicates that the following assets have fair…
Quail Company purchases 80% of the common stock of Commo Company for $800,000. At the time of the purchase, Commo has the following balance sheet: (see attachment)The fair values of assets are as follows: Cash equivalents . . . . . . . . . . . . . . . . . . $120,000 Inventory . . . . . . . . . . . . . . . . . . . . . . . . 250,000 Land. . . . . . . . . . . . . . . . . . . . . . . . . . . . 200,000 Building . . . . . . . . . . . . . . . . . . . . . . . . . 650,000 Equipment . . . . . . . . . . . . . . . . . . . . . . . 200,000 1. Prepare the value analysis schedule and the determination and distribution of excess schedule under three alternatives for valuing the NCI: a. The value of the NCI is implied by the price paid by the parent for the controlling interest. b. The market value of the shares held by the NCI is $45 per share. c. The international accounting option, which does not allow goodwill to be recorded as part of the NCI, is used. 2. Prepare the elimination entries that would…
On May 1, Burns Corporation acquired 100 percent of the outstanding ownership shares of Quigley Corporation in exchange for
$728,000 cash. At the acquisition date, Quigley's book and fair values were as follows:
Cash
Receivables
Inventory
Land
Building and equipment (net)
Patented technology
Total assets
Accounts payable
Long-term liabilities
Common stock ($5 par value)
Additional paid-in capital
Retained earnings
Total liabilities and stockholders equity
Total assets
Assets
Book Value
$ 112,000 $
218,000
232,000
$
177,000
323,000
0
$1,062,000
$ 162,500 $
638,000
210,000
90,000
(38,500)
$1,062,000
Burns directs Quigley to seek additional financing for expansion through a new long-term debt issue. Consequently, Quigley will issue
a set of financial statements separate from that of its new parent to support its request for debt and accompanying regulatory filings.
Quigley elects to apply pushdown accounting in order to show recent fair valuations for its assets.
Prepare a separate…
Chapter 2 Solutions
Advanced Accounting
Ch. 2 - Prob. 1QCh. 2 - Describe the concept of a synergy. What are some...Ch. 2 - Prob. 3QCh. 2 - What does the term consolidated financial...Ch. 2 - Within the consolidation process, what is the...Ch. 2 - Prob. 6QCh. 2 - Prob. 7QCh. 2 - Prob. 8QCh. 2 - Prob. 9QCh. 2 - Prob. 10Q
Ch. 2 - Prob. 11QCh. 2 - Prob. 12QCh. 2 - Which of the following does not represent a...Ch. 2 - Prob. 2PCh. 2 - Prob. 3PCh. 2 - Prob. 4PCh. 2 - Prob. 5PCh. 2 - Prob. 6PCh. 2 - Prob. 7PCh. 2 - When does gain recognition accompany a business...Ch. 2 - Prob. 9PCh. 2 - Prob. 10PCh. 2 - Prob. 11PCh. 2 - On June 1, Cline Co. paid 800,000 cash for all of...Ch. 2 - On May 1, Donovan Company reported the following...Ch. 2 - Prob. 14PCh. 2 - Prob. 15PCh. 2 - Prob. 16PCh. 2 - Prob. 17PCh. 2 - On its acquisition-date consolidated balance...Ch. 2 - On its acquisition-date consolidated balance...Ch. 2 - Prob. 20PCh. 2 - Prob. 21PCh. 2 - Prob. 22PCh. 2 - The following book and fair values were available...Ch. 2 - Prob. 24PCh. 2 - Prob. 25PCh. 2 - Prob. 26PCh. 2 - Prob. 27PCh. 2 - Prob. 28PCh. 2 - SafeData Corporation has the following account...Ch. 2 - Prob. 34PCh. 2 - Prob. 35PCh. 2 - Prob. 39APBCh. 2 - Prob. 40APB
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