Soft Bound Version for Advanced Accounting 13th Edition
13th Edition
ISBN: 9781260110579
Author: Hoyle
Publisher: McGraw Hill Education
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Chapter 3, Problem 27P
a.
To determine
Construct Company P’s acquisition-date fair-value allocation schedule for its investment in Company S.
b.
To determine
Explain the manner in which Company P determined its December 31, 2018, Investment in Company S balance.
c.
To determine
Prepare a worksheet to determine the consolidated values to be reported on Company P’s financial statements.
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On January 1, 2025, P Corporation acquired 100 percent of the voting stock of S Corporation in exchange for $2,347,500 in cash and securities. On the acquisition date, S had the following balance sheet:
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102,000
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$
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4 years
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Net Income…
On January 1, 2020, Prestige Corporation acquired 100 percent of the voting stock of Stylene Corporation in exchange for $2,281,500 in cash and securities. On the acquisition date, Stylene had the following balance sheet:
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Inventory
141,000
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1,990,000
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Total liabilities and equity
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At the acquisition date, the book values of Stylene’s assets and liabilities were generally equivalent to their fair values except for the following assets:
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$
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8 years
Customer lists
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196,000
4 years
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1,121,500
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During the next two years, Stylene has the following income and dividends in its own separately prepared financial…
On May 31, 2018, Armstrong Company paid $3,500,000 to acquire all of the common stock of Hall Corporation, which became a division of Armstrong. Hall reported the
following balance sheet at the time of the acquisition:
Current assets
$ 900,000
Current liabilities
$ 600,000
Noncurrent assets
2,700,000
Long-term liabilities
500,000
Stockholders' equity
2,500,000
Total liabilities and
Total assets
$3,600,000
stockholders' equity
$3,600,000
It was determined at the date of the purchase that the fair value of the identifiable net assets of Hall was $3,100,000. At December 31, 2018, Hall reports the following balance
sheet information:
Current assets
$ 800,000
Noncurrent assets (including goodwill recognized in purchase)
2,600,000
Current liabilities
(700,000)
Long-term liabilities
(500,000)
Net assets
$2,200,000
It is determined that the fair value of the Hall division is $2,300,000.
Instructions
(a) Compute the amount of goodwill recognized, if any, on May 31, 2018.
(b) Determine the…
Chapter 3 Solutions
Soft Bound Version for Advanced Accounting 13th Edition
Ch. 3 - Prob. 1QCh. 3 - Prob. 2QCh. 3 - Prob. 3QCh. 3 - Prob. 4QCh. 3 - When a parent company applies the initial value...Ch. 3 - Several years ago, Jenkins Company acquired a...Ch. 3 - Benns adopts the equity method for its 100 percent...Ch. 3 - Prob. 8QCh. 3 - Prob. 9QCh. 3 - Prob. 10Q
Ch. 3 - Prob. 1PCh. 3 - Prob. 2PCh. 3 - Prob. 3PCh. 3 - Prob. 4PCh. 3 - Paar Corporation bought 100 percent of Kimmel,...Ch. 3 - Prob. 6PCh. 3 - Prob. 7PCh. 3 - If no legal, regulatory, contractual, competitive,...Ch. 3 - Prob. 9PCh. 3 - Prob. 10PCh. 3 - What is Phoenixs consolidated retained earnings...Ch. 3 - On its December 31, 2018, consolidated balance...Ch. 3 - Prob. 13PCh. 3 - Herbert, Inc., acquired all of Rambis Companys...Ch. 3 - Prob. 15PCh. 3 - Prob. 16PCh. 3 - Prob. 17PCh. 3 - Prob. 18PCh. 3 - Prob. 19PCh. 3 - Prob. 20PCh. 3 - Prob. 21PCh. 3 - Prob. 22PCh. 3 - Following are selected account balances from...Ch. 3 - Prob. 24PCh. 3 - Prob. 25PCh. 3 - Prob. 26PCh. 3 - Prob. 27PCh. 3 - Prob. 28PCh. 3 - Prob. 29PCh. 3 - Prob. 30PCh. 3 - On January 1, 2017, Pinnacle Corporation exchanged...Ch. 3 - Following are selected accounts for Mergaronite...Ch. 3 - Prob. 33PCh. 3 - Prob. 34PCh. 3 - Prob. 35PCh. 3 - Prob. 36PCh. 3 - Prob. 37PCh. 3 - Prob. 38PCh. 3 - Prob. 39APCh. 3 - Prob. 40APCh. 3 - Prob. 1DYSCh. 3 - FASB ASC AND IASB RESEARCH CASE A vice president...Ch. 3 - Prob. 4DYSCh. 3 - Prob. 5DYS
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