E) Astor Corporation's balance sheet at January 1, 20X7, reflected the following balances: $ 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 Cash & Receivables Inventory Land 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 $120,000 70,000 480,000 $140,000 60,000 550,000 Buildings & Equipment (net) 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. Inventory. ii. Land. iii. Buildings and Equipment (net). Goodwill. iv. v. Investment in Astor Corporation.

E) Astor Corporation's balance sheet at January 1, 20X7, reflected the following balances: $ 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 Cash & Receivables Inventory Land 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 $120,000 70,000 480,000 $140,000 60,000 550,000 Buildings & Equipment (net) 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. Inventory. ii. Land. iii. Buildings and Equipment (net). Goodwill. iv. v. Investment in Astor Corporation.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter21: The Statement Of Cash Flows

Section: Chapter Questions

Problem 13P: Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and...

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