On May 31, 2020, Dana Company paid $ 550,000 cash and issues 15,000 shares of its stock with a market value of $15 ($10 par value) for Naser Company net assets. Naser Company is dissolved. On May 31, 2020, Naser Company reported the following account balances: Naser Company Accounts Book Value FairValue Current Assets $280,000 $320,000 Plant Assets (net) 360,000 560,000 Liabilities 160,000 140,000 Common Stock, $10 par value Additional paid-in capital 100,000 300,000 Retained Earnings 80,000 Net Assets 480,000 740,000 Required: 1. Record Journal entries on Dana' Books needed to record this combination. 2. What amount of goodwill will be reported for the business combination 3. What amount of plant assets acquired should be recorded in this combination by Dana Company?

On May 31, 2020, Dana Company paid $ 550,000 cash and issues 15,000 shares of its stock with a market value of $15 ($10 par value) for Naser Company net assets. Naser Company is dissolved. On May 31, 2020, Naser Company reported the following account balances: Naser Company Accounts Book Value FairValue Current Assets $280,000 $320,000 Plant Assets (net) 360,000 560,000 Liabilities 160,000 140,000 Common Stock, $10 par value Additional paid-in capital 100,000 300,000 Retained Earnings 80,000 Net Assets 480,000 740,000 Required: 1. Record Journal entries on Dana' Books needed to record this combination. 2. What amount of goodwill will be reported for the business combination 3. What amount of plant assets acquired should be recorded in this combination by Dana Company?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 3P: Income Statement, Lower Portion Cunningham Company reports a retained earnings balance of 365,200 at...

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