Advanced Accounting
Advanced Accounting
12th Edition
ISBN: 9781305084858
Author: Paul M. Fischer, William J. Tayler, Rita H. Cheng
Publisher: Cengage Learning
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Chapter 2, Problem 5.1E
To determine

Concept Introduction: The value analysis is more of a systematic production review which includes the purchase process and the design of product to make sure the costs are reduced. This can be done using a set of activities including the product designs to make use of the parts that have low-tolerance which are affordable, to switch to the components that cost low, including standardization of the parts to ensure the volume discounts are achieved.

To prepare: The value analysis schedule and the determination and distribution of excess schedule.

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A primary beneficiary company has established control over a VIE by guaranteeing its long term debt and by establishing an income distribution contract. The balance sheet of the VIE on the acquisition date was as follows: Current assets . . . . . . . . . . . . 100,000  Land and buildings . . . . . . . 600,000 Accumulated depreciation (100,000) Equipment . . . . . . . . . . . . . . . 300,000 Accumulated depreciation . (50,000) Total assets. . . . . . . . . . . . . . . 850,000  Current liabilities . . .. . . . . . . . 70,000 Long term note payable . .  700,000  Common stock, $1 par . . . . . . 5,000 Paid-in excess of par . . . . . .. . 45,000 Retained earnings . . . . . . .. . . 30,000 Total liabilities and equity .. 850,000 The fair values of the land and buildings are $800,000. The fair value of the equipment is $400,000. The fair value of the company’s net (of debt) assets is estimated to be $600,000. Prepare the distribution of excess schedule.
PLTO Ltd. is considering purchasing the net assets of Ivanhoe Corporation. Following is the statement of financial position of Ivanhoe as at December 31, 2023: Ivanhoe Corporation Statement of Financial Position As at December 31, 2023 Current assets Buildings and equipment Accumulated depreciation Land Total assets Current liabilities Common shares Retained earnings Total equities Current assets Building and equipment Land Following are the fair values for Ivanhoe's net assets, as at December 31, 2023: Current liabilities $230,400 754,000 (108,000) 169.000 Value of goodwill $1,045,400 $187,000 582,000 276,400 $1,045,400 $ Calculate the value of goodwill that would be acquired by PLTO if it offered $2,061,600 for the net assets of Ivanhoe. $224,500 488,400 309,700 (166,000) $856,600
arizona corp. acquired the business data systems for $320,000 cash and assumed all liabilites at the data of purchase.  data's books showed tangible assets of $340,000, liabilities of $19,000, and stockholders' equity of $321,000. an appraiser assessed the fair market value of the tangible assets at $310,000 at the data of acquisition. a. compute the amount of goodwill acquired. b. record the acquisition in a financial statements model.  Arizona corps. financial condition just prior to the aquistion is shown in the following statements model. cash paid- liabilites assumed- total-  FMV of assets- goodwill-
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