Huey Company acquires 100% of the stock of Solar Corporation on january 1, 2019, for $2.400,000 cash. As of that date Solor had the following account balances:Book Value Eair valueCash$630.000$630,000Accounts receivable775.000775,000Inventory350.000400,000Building-net (10 year life)1,000,000 900,.000Equipment-net (5 year life)300.000400.000Land600,000900,000Accounts Payable125.000125,000Bonds Payable (Face amount S1,000,000.due 12/31/2023)2.000.000 2,050,000Common stock500,000Additional paid-in capitalRetained earnings250.000780.000in 2019 and 2020, Solar had net income of $250,000 and $240,000, respectively In addition, Solar paid dividends of $16,000 in both years, Inventory is assumed to be sold in2019. Assume straight line amortization/ depreciation for assets and bonds payable.What amount of Solars single legat entity stockholders' equity will be included in the consolidated balance sheet at date of acquisition?Select oneA $2.064.000B $3,350,000O C.S1,530,000D. S0

Net assets is sum total of common stock, Additional paid in capital, Retained earnings.

pany acquires T00j0 othe stockof 30lar Cor on on jan 2019.1or 0000cash. As of that date Soiar had the folowing account batances Book Value Edir value Cash $630.000 $630,000 Accounts receivable 775.000 775,000 Inventory 350.000 400,000 Building-net (10 year life) Equipment-net (5 year life) 1,000.000 900,000 300,000 400.000 Land 600.000 900,000 Accounts Payable 125.000 125,000 Bonds Payable (Face amount $1,000,000. due 12/31/2023) Common stock Additional paid-in capital Retained earnings 2.000.000 2,050,000 500,000 250.000 780.000 in 2019 and 2020, Solar had net income of $250,000 and $240,000, respectively. In addition, Solar paid dividends of $16,000 in both years, Inventory is assumed to be sold in 2019. Assume straight line amortization/ depreciation for assets and bonds payable. What amount of Solars single legal entity stockholders' equity will be included in the consolidated balance sheet at date of acquisition? Select one A $2.064.000 B. $3.350,000 O C S1,530,000 D.S0

pany acquires T00j0 othe stockof 30lar Cor on on jan 2019.1or 0000cash. As of that date Soiar had the folowing account batances Book Value Edir value Cash $630.000 $630,000 Accounts receivable 775.000 775,000 Inventory 350.000 400,000 Building-net (10 year life) Equipment-net (5 year life) 1,000.000 900,000 300,000 400.000 Land 600.000 900,000 Accounts Payable 125.000 125,000 Bonds Payable (Face amount $1,000,000. due 12/31/2023) Common stock Additional paid-in capital Retained earnings 2.000.000 2,050,000 500,000 250.000 780.000 in 2019 and 2020, Solar had net income of $250,000 and $240,000, respectively. In addition, Solar paid dividends of $16,000 in both years, Inventory is assumed to be sold in 2019. Assume straight line amortization/ depreciation for assets and bonds payable. What amount of Solars single legal entity stockholders' equity will be included in the consolidated balance sheet at date of acquisition? Select one A $2.064.000 B. $3.350,000 O C S1,530,000 D.S0

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Blue sky company’s balance sheet dated 12/31/2020 reports 6 million And assets in 2.4 million in liabilities book values for all the firms assets, approximate their fair values except for land which has the book value that is 360,000 lower than it’s fair value on December 31 Horatio corporation pay 6.12 million to acquire blue sky as a result of the purchase, Horacio should record a Goodwill amount of. please give me answer fast
AAA Inc. Was merge into BBB Corp. in a combination properly accounted for as acquisition of interest. Their condensed Statement of Financial Position before the combination show: ввB Cогр. 88,000 420,000 1,119,600 1,040,000 260,000 171,600 AAA Inc. Cash 88,000 500,000 1,700,000 4,654,000 Accounts Receivable, net Inventory Property Plant and Equipment Patent Accounts Payable Mortgage Payable Capital Stock, par P100 Share Premium Retained Earnings 1,000,000 1,704,000 2,600,000 390,000 1,300,000 390,000 1,066,000 1,248,000 As per independent appraiser's report, BBB's assets have fair market value of P1,653,600 for current assets, P1,248,000 for plant and equipment and P338,000 for patents. BBB's liabilities are properly valued. AAA purchases BBB's net asset for P4,000,000. Compute for the consolidated asset after acquisition.
5. Answer what is required of the problem.
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A-5
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Req A, Req B to D, Req E & F, Req G
Financial information at 30 June 2020 of Great Ltd and its subsidiary company, Wall Ltd, is shown below. At 1 July 2017, the date Great Ltd acquired its 80% shareholding in Wall Ltd, all the identifiable assets and liabilities of Wall Ltd were at fair value except for the following assets: Carrying amount Fair value Plant (cost $75,000) $49,000 $55,000 Land 29,000 37,000 The plant has an expected life of 10 years, with benefits being received evenly over that period. Differences between carrying amounts and fair values are adjusted on consolidation. The land on hand at 1 July 2017 was sold on 1 February 2018 for $40,000. Any valuation reserve in relation to the land is transferred on consolidation to retained earnings. Great Ltd uses the full goodwill method. The fair value of the non-controlling interest at 1 July 2017 was $31,500. Great Ltd Wall Ltd Sales revenue $ 316,000 $ 220,000…