Balance sheets for Fort Corporation and Steele Company on December 31, 2008, before acquisition, are as follows: Fort Steele Cash and Receivables $ 700,000 Inventory Land $240,000 320,000 60,000 720,000 Buildings and Equipment (net) Total 110,000 _510,000 $2.040,000 160,000 $780.000 $ 140,000 Current Payables Long-term Payables 60,000 320,000 200,000 420,000 600,000 880,000 $2,040,000 Common Stock Retained Earnings 200,000 $780,000 Total Note that Steele owed Fort $20,000 on account on 12/31; this amount is reflected in the above balances. Fort Corporation acquired 80 percent of Steele Company's outstanding stock for $450,000 cash on January 1, 2009. On that date, the fair value of Fort's depreciable assets was $600,000 and the fair value of Steele's depreciable assets was $280,000.
Balance sheets for Fort Corporation and Steele Company on December 31, 2008, before acquisition, are as follows: Fort Steele Cash and Receivables $ 700,000 Inventory Land $240,000 320,000 60,000 720,000 Buildings and Equipment (net) Total 110,000 _510,000 $2.040,000 160,000 $780.000 $ 140,000 Current Payables Long-term Payables 60,000 320,000 200,000 420,000 600,000 880,000 $2,040,000 Common Stock Retained Earnings 200,000 $780,000 Total Note that Steele owed Fort $20,000 on account on 12/31; this amount is reflected in the above balances. Fort Corporation acquired 80 percent of Steele Company's outstanding stock for $450,000 cash on January 1, 2009. On that date, the fair value of Fort's depreciable assets was $600,000 and the fair value of Steele's depreciable assets was $280,000.
Chapter1: Financial Statements And Business Decisions
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