Prepare Allerton’s entry to record its acquisition of Deluxe in its accounting records assuming the following cash exchange amounts: $132,000 and $86,000. (I

On January 1, 2018 Casey Corporation exchanged $3,210,000 cash for 100 percent of the outstanding voting stock of Kennedy Corporation. Casey plans to maintain Kennedy as a wholly owned subsidiary with separate legal status and accounting information systems. At the acquisition date, Casey prepared the following fair-value allocation schedule: Fair value of Kennedy (consideration transferred) Carrying amount acquired Excess fair value to buildings (undervalued) to licensing agreements (overvalued) to goodwill (indefinite life) Accounts Cash Accounts receivable Inventory Investment in Kennedy Buildings (net) Licensing agreements Goodwill Total assets Accounts payable Long-term debt Common stock Immediately after closing the transaction, Casey and Kennedy prepared the following postacquisition balance sheets from their separate financial records. Additional paid-in capital Retained earnings Total liabilities and equities $ Casey 480,000 1,420,000 1,490,000 3,210,000 5,992,500 0 $ 393,000…

Accounting On January 1, 2022, Pronto Company acquired all of Speedy Inc.'s voting stock for $28,800,000. Speedy's net assets were reported at amounts approximating book value, but Pronto determined that Speedy had the following previously unreported intangible assets: Developed technology, fair value $2,400,000, 5-year life • Favorable leases, fair value $1,200,000, 4-year life ● Speedy's shareholders' equity on January 1, 2022, was $12,000,000. It is now December 31, 2023 (two years later). Speedy reported net income of $960,000 in 2022. There are no impairments of identifiable intangibles or goodwill in 2022 or 2023. Pronto uses the complete equity method to report its investment in Speedy on its own books. Speedy's December 31, 2023, trial balance appears below. Dr (Cr) $24,000,000 Current assets Property and equipment, net 60,000,000 Liabilities (69,600,000) Capital stock (2,400,000) Retained earnings, January 1 (10,560,000) Sales revenue (84,000,000) Cost of goods sold 72,000,000…

Assume that Pauly D Company obtains all of the outstanding common stock of Snooki Company on January 1, 2020. Pauly D acquires this stock for $1,000,000 in cash.   The book values as well as the appraised fair values of Snooki's accounts follow:   Book Values 1/1/20 Fair Values 1/1/20 Difference Current Assets 350,000 350,000 -   Trademarks (indefinite life) 240,000 260,000 20,000 Patented technology (10 yr remaining life) 310,000 450,000 140,000 Equipment (5 year remaining life) 190,000 140,000 (50,000) Liabilities (400,000) (400,000) -   Net book value $690,000 $800,000 $110,000 Common Stock $40 par value (270,000) Additional paid-in-capital (20,000) Retained earnings, 1/1/20 (400,000)   Pauly D considers the economic life of Snooki's trademarks as having an indefinite life. For definite lived assets acquired in the combination, we assume straight-line amortization and depreciation with no salvage value.   Step 1:Perform an Allocation of Purchase Price and identify if Pauly D should…

In January 1, 2011, Cullmon Company acquired an 80% interest in Toner Company for a purchase price that was $550,000 over the book value of Toner’s Stockholders’ Equity on the acquisition date. The Cullmon allocated the excess to the following [A] assets: [A] Asset Initial Fair Value Useful Life (years) Patent 300,000 10 Goodwill 250,000 Indefinite   $550,000   Toner sells inventory to the Cullmon (upstream) which includes that inventory in products that it (Cullmon), ultimately, sells to customers outside of the controlled group. You have compiled the following data as of 2016 and 2017:   2016 2017 Transfer price for inventory sale $ 671,000 $ 733,000 Cost of goods sold (615,000)              (653,000) Gross profit $   56,000 $   80,000 % inventory remaining         25%         35% Gross profit deferred $   14,000 $   28,000       EOY Receivable/Payable $   90,000 $ 100,000 The inventory not…

On September 1, 2017, Winans Corporation acquired Aumont Enterprises for a cash payment of $700,000, At the time of purchase, Aumont's Balance sheet showed assets of $620,000 Liabilities of $200.000 and owners equity of $420,000, The fair value of Aumonts assets is estimated to be $800 000. Compute the amount of good will acquired by Winans. O S80 000 O $100.000 O $180 000 O All of the above

Questions:  a. How much is the Goodwill/Gain on Bargain Purchase? b. How much is the Consolidated Assets? c.

None

Sagar

On January 1, 2021, Casey Corporation exchanged $3,300,000 cash for 100 percent of the outstanding voting stock of Kennedy Corporation. Casey plans to maintain Kennedy as a wholly owned subsidiary with separate legal status and accounting information systems.   At the acquisition date, Casey prepared the following fair-value allocation schedule:                   Fair value of Kennedy (consideration transferred)         $ 3,300,000   Carrying amount acquired           2,600,000   Excess fair value         $ 700,000   to buildings (undervalued) $ 382,000           to licensing agreements (overvalued)   (108,000 )     274,000   to goodwill (indefinite life)         $ 426,000       Immediately after closing the transaction, Casey and Kennedy prepared the following postacquisition balance sheets from their separate financial records (credit balances in parentheses).   Accounts Casey   Kennedy Cash $ 457,000     $ 172,500   Accounts receivable   1,655,000…