aying of its own common stock with a fair value of $40 per share. Parent paid legal and accounting fees of $21,800 as $6,100 in stock issuance costs. Following are preacquisition financial balances for Parent Company and Subsidiary Company as of December 31 the acquisition. Also included are fair values for Subsidiary Company accounts. Cash Receivables Inventory Land Building and equipment (net) Franchise agreements Accounts payable Parent Company Subsidiary Company Book ValuesBook Values Fair Values 12/31 12/31 12/31 $ 215,000 58,550 $58,550 258,750 376,000 376,000 532,500 252,000 309,400 767,500 136,000 114,700 780,000 282,000 342,900 245,000 240,000 279,400 (321,000) (173,000) (173,000) (140,000) (46,250) (46,250) (545,000) (545,000) Accrued expenses Longterm liabilities Common stock-$20 par value Common stock-$5 par value We (1,085,000) (660,000) (70.000 (210,000) 100.0001

aying of its own common stock with a fair value of $40 per share. Parent paid legal and accounting fees of $21,800 as $6,100 in stock issuance costs. Following are preacquisition financial balances for Parent Company and Subsidiary Company as of December 31 the acquisition. Also included are fair values for Subsidiary Company accounts. Cash Receivables Inventory Land Building and equipment (net) Franchise agreements Accounts payable Parent Company Subsidiary Company Book ValuesBook Values Fair Values 12/31 12/31 12/31 $ 215,000 58,550 $58,550 258,750 376,000 376,000 532,500 252,000 309,400 767,500 136,000 114,700 780,000 282,000 342,900 245,000 240,000 279,400 (321,000) (173,000) (173,000) (140,000) (46,250) (46,250) (545,000) (545,000) Accrued expenses Longterm liabilities Common stock-$20 par value Common stock-$5 par value We (1,085,000) (660,000) (70.000 (210,000) 100.0001

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter20: Corporations: Distributions In Complete Liquidation And An Overview Of Reorganizations

Section: Chapter Questions

Problem 35P

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