Condensed statements of financial position of Care Corp and Charm Corp as of December 2021 are as follows: Care Current Assets 43,750 Noncurrent Assets 181,250 Liabilities 16,250 Common Stock, P20 par 137,500 APIC 8,750 Retained Earnings 62,500 Charm Current Assets 16,250 Noncurrent Assets 106,250 Liabilities 8,750 Common Stock, P20 par 75,000 APIC 6,250 Retained Earnings 32,500 On January 1, 2022 Care Corp issued 8,750 shares with a market value of P25/share for the assets and liabilities of Charm Corp. The book values reflects the fair value of the assets and liabilities, except that non current assets of Charm have a temporary appraisal value of 157,500 and the noncurrent assets of Care Corp is overstated by 7,500. Contingent consideration, which is determinable, is equal to 3,750. Care also paid for the share issuance cost of 8,500 and other acquisition related cost of 4,750. On March 1, the contingent consideration has a determinable amount of 5,000 and on the same date the provisional fair value of the noncurrent assets of Charm increased by 2,250. 17. What is the goodwill at the end of 2022?

Condensed statements of financial position of Care Corp and Charm Corp as of December 2021 are as follows: Care Current Assets 43,750 Noncurrent Assets 181,250 Liabilities 16,250 Common Stock, P20 par 137,500 APIC 8,750 Retained Earnings 62,500 Charm Current Assets 16,250 Noncurrent Assets 106,250 Liabilities 8,750 Common Stock, P20 par 75,000 APIC 6,250 Retained Earnings 32,500 On January 1, 2022 Care Corp issued 8,750 shares with a market value of P25/share for the assets and liabilities of Charm Corp. The book values reflects the fair value of the assets and liabilities, except that non current assets of Charm have a temporary appraisal value of 157,500 and the noncurrent assets of Care Corp is overstated by 7,500. Contingent consideration, which is determinable, is equal to 3,750. Care also paid for the share issuance cost of 8,500 and other acquisition related cost of 4,750. On March 1, the contingent consideration has a determinable amount of 5,000 and on the same date the provisional fair value of the noncurrent assets of Charm increased by 2,250. 17. What is the goodwill at the end of 2022?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 103.4C

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Leverage Cook Corporation issued financial statements at December 31, 2019, that include the following information: Balance sheet at December 31,2019 Assets $8,000,000 Liabilities $1,200,000 Stockholders' equity (300,000 shares) $6,800,000 Income statement for 2019: Income from operations $1,200,000 Less: Interest expense (100,000) Income before taxes $1,100,000 Less: Income taxes expense (0,30) (330,000) Net income $ 770,000 The levels of assets, liabilities, stockholders' equity, and operating income have been stable in recent years; however, Cook Corporation is planning a 51,800,000 expansion program that will increase income from operations by $350,000 to $1,550,000, Cook is planning to sell 8.5% notes at par to finance the expansion. Required: What earnings per share does Cook report before the expansion?
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