Balance Sheet $ 300,000 600,000 $ 300,000 500,000 50,000 1,300,000 Current assets Current liabilities . Equipment (net) Plant assets (net). Goodwill Bonds payable Common stock ($1 par). Paid-in capital in excess of par 1,600,000 300,000 Retained earnings . Total liabilities and equity 650,000 Total assets.. $2,800,000 $2,800,000 Summary Income Statement Sales revenue $800,000 Cost of goods sold. Gross profit .. Operating expenses Depreciation expense 520,000 $280,000 $150,000 80,000 230,000 Net income $ 50,000
Avery Company acquires the net assets of Iowa Company on July 1, 2015. The net assets acquired include plant assets that are provisionally estimated to have a fair value of $600,000 with a 10-year usable life and no salvage value.
In March 2016, the final estimated fair value of the acquired plant assets is $700,000 with no change in the estimate of useful life or salvage value.
1. Prepare any
2. Prepare the revised balance sheet and income statement for 2015 that will be included in the 2016 comparative statements.
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