Company P acquired 80% of the outstanding common stock of the Company S by isuing common stock with a market value of $550,000 The balance sheet of Company S was as followon the acquisition date:AssetsLiabilities and EquityCash$ 50,000Liabilities$120,000Inventory120,000Common stock, $10 par100,000Other paid-in capital150,000250,000Land100,000Building (net)350,000Retained earningsTotal$620,000Total$620,000The market values were as follows. Inventory, $130,000; Land, $120,000, Building, $400,000.What is the amount that will appear as Cash Provided (Used) by Investing Activities on the consolidated statement of cash flows, as a result of this purchase?O $600,000O $500,000O $50,000O SO

Cashflow is prepared to track how well company is generating cash, paying its debt obligations and…

Answered: Company P ac on the acquisiti Assets…

Company P ac on the acquisiti Assets Cash Inventory Land Building (ne Total The market valu What is the amo O $600,000 O $500,000 O 550,000 O SO

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter6: Corporations: Redemptions And Liquidations

Section: Chapter Questions

Problem 1BCRQ

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