Giants Co paid $12,500,000 cash to acquire California Co. At the time of the acquisition, Giants Co and California Co had the following balance sheet information: Giants Co Balance Sheet at time of purchase Current Assets Long-Term Assets Total Liabilities "Book" value $13,400,000 $28,700,000 $17,600,000 California Co Balance Sheet at time of purchase Current Assets Long-Term Assets Total Liabilities ** REQUIRED: 1) Determine the following: a) amount of goodwill that Giants Co will record as a result of the aquisition. b) Long-term Assets Giants Co will have, immediately after the acquisition. c) Total Assets Giants Co will have, immediately after the acquisition. d) Total Liabilities Giants Co will have, immediately after the acquisition. Given the same information as above, assume that Giants Co pays $10,500,000 cash, instead of $12,500,000 cash, for California Co. 2) Determine the following: a) amount of goodwill that Giants Co will record as a result of the aquisition. b) Current Assets Giants Co will have, immediately after the acquisition. c) Total Assets Giants Co will have, immediately after the acquisition. d) Total Equity Giants Co will have, immediately after the acquisition. "Book" value "Fair" Value $5,600,000 $6,100,000 $13,800,000 $15,300,000 $9,100,000 $9,600,000

COMPUTE FOR THE GOODWILL.

Acquisition Entries, Acquisition Costs, Bargain Gain Plastic Corporation is contemplating a business combination with Steel Corporation at December 31, 2021. Steel's condensed balance sheet on that date appears below: Assets Cash and receivables Inventory Equity method investments Land Buildings and equipment Patents Total assets Liabilities and Stockholders' Equity Liabilities Common stock Retained earnings Total liabilities and equity Cash and receivables Inventory Equity method investments Land Description Buildings and equipment Patents Goodwill Liabilities Required Prepare the journal entry to record the business combination of Plastic and Steel for each of the following acquisition costs and combination methods. (a) Plastic acquires Steel as a merger for $250,000 cash. Other direct cash acquisition costs are $20,000. General Journal Description Cash and receivables Inventory Equity method investments. Land Liabilities Cash Buildings and equipment Patents ÷ Description (b) Plastic…

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