E) Astor Corporation's balance sheet at January 1, 20X7, reflected the following balances: Cash & Receivables Inventory Land $ 80,000 Accounts Payable 120,000 Income Taxes Payable 70,000 Bonds Payable 480,000 Common Stock Retained Earnings $ 40,000 60,000 200,000 250,000 200,000 Buildings & Equipment (net) Total Assets $750,000 Total Liabilities & Stockholders' Equity $750,000 Phel Corporation, which had just entered into an active acquisition program, acquired 100 percent of Astor's common stock on January 2, 20X7, for $576,000. A careful review of the fair value of Astor's assets and liabilities indicated the following: Book Value Fair Value Inventory Land Buildings & Equipment (net) $120,000 70,000 480,000 $140,000 60,000 550,000 Assume the book values of Phel's Inventory, Land, and Buildings and Equipment accounts are $300,000, $85,000, and $1,200,000, respectively. Required Compute the appropriate amount to be included in the consolidated balance sheet immediately following the acquisition for each of the following items: i. Goodwill. ii. Investment in Astor Corporation.
Debenture Valuation
A debenture is a private and long-term debt instrument issued by financial, non-financial institutions, governments, or corporations. A debenture is classified as a type of bond, where the instrument carries a fixed rate of interest, commonly known as the ‘coupon rate.’ Debentures are documented in an indenture, clearly specifying the type of debenture, the rate and method of interest computation, and maturity date.
Note Valuation
It is the process to determine the value or worth of an asset, liability, debt of the company. It can be determined by many processes or techniques. Many factors can impact the valuation of an asset, liability, or the company, like:
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