17 The financial statement amounts for the Atwood Company and the Franz Company as of December 31, 2024, are presented below. Also included are the fair values for Franz Company's net assets (all numbers are in thousands). Atwood Book Franz Book Franz Fair Value 12/31/2024 Value 12/31/2024 Value 12/31/2024 02:17:14 Cash $ 870 $ 240 $ 240 Receivables 660 600 600 Inventory 1,230 420 580 Land 1,800 260 250 Buildings (net) 1,800 540 650 Equipment (net) 660 380 400 Accounts payable (570) (240) (240) Accrued expenses Long-term liabilities (270) (60) (2,700) (1,020) (60) (1,120) Common stock ($20 par) (1,980) Common stock ($5 par) (420) Additional paid-in capital (210) (180) Retained earnings 1/1/24 (1,170) (480) Revenues (2,880) (660) Expenses 2,760 620 Note: Parenthesis indicate a credit balance Assume an acquisition business combination took place at December 31, 2024. Atwood issued 50 shares of its common stock with a fair value of $35 per share for all of the outstanding common shares of Franz. Stock issuance costs of $15 (in thousands) and direct costs of $10 (in thousands) were paid. Compute consolidated goodwill at the date of the acquisition Submit
17 The financial statement amounts for the Atwood Company and the Franz Company as of December 31, 2024, are presented below. Also included are the fair values for Franz Company's net assets (all numbers are in thousands). Atwood Book Franz Book Franz Fair Value 12/31/2024 Value 12/31/2024 Value 12/31/2024 02:17:14 Cash $ 870 $ 240 $ 240 Receivables 660 600 600 Inventory 1,230 420 580 Land 1,800 260 250 Buildings (net) 1,800 540 650 Equipment (net) 660 380 400 Accounts payable (570) (240) (240) Accrued expenses Long-term liabilities (270) (60) (2,700) (1,020) (60) (1,120) Common stock ($20 par) (1,980) Common stock ($5 par) (420) Additional paid-in capital (210) (180) Retained earnings 1/1/24 (1,170) (480) Revenues (2,880) (660) Expenses 2,760 620 Note: Parenthesis indicate a credit balance Assume an acquisition business combination took place at December 31, 2024. Atwood issued 50 shares of its common stock with a fair value of $35 per share for all of the outstanding common shares of Franz. Stock issuance costs of $15 (in thousands) and direct costs of $10 (in thousands) were paid. Compute consolidated goodwill at the date of the acquisition Submit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
None
Transcribed Image Text:17
The financial statement amounts for the Atwood Company and the Franz Company as of December 31, 2024, are presented below. Also included are the fair
values for Franz Company's net assets (all numbers are in thousands).
Atwood Book Franz Book
Franz Fair
Value
12/31/2024
Value
12/31/2024
Value
12/31/2024
02:17:14
Cash
$ 870
$ 240
$ 240
Receivables
660
600
600
Inventory
1,230
420
580
Land
1,800
260
250
Buildings (net)
1,800
540
650
Equipment (net)
660
380
400
Accounts payable
(570)
(240)
(240)
Accrued expenses
Long-term liabilities
(270)
(60)
(2,700)
(1,020)
(60)
(1,120)
Common stock ($20 par)
(1,980)
Common stock ($5 par)
(420)
Additional paid-in capital
(210)
(180)
Retained earnings 1/1/24
(1,170)
(480)
Revenues
(2,880)
(660)
Expenses
2,760
620
Note: Parenthesis indicate a credit balance
Assume an acquisition business combination took place at December 31, 2024. Atwood issued 50 shares of its common stock with a fair value of $35 per
share for all of the outstanding common shares of Franz. Stock issuance costs of $15 (in thousands) and direct costs of $10 (in thousands) were paid.
Compute consolidated goodwill at the date of the acquisition
Submit
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education