Elston Company Balance Sheet December 31, 2004 Assets 800,000 Liabilities 100,000 Capitalstock 400,000 Retainedearnings 300,000 Totalequities 800,000 Alley Company Balance Sheet December 31, 2004 Assets 600,000 Liabilities 150,000 Capitalstock 370,000 Retainedearnings 80,000 Totalequities 600,000 Elston Co. acquires 30% interest in Alley Company on Dec 31, 2004. The carrying amount of Alley's net assers on Dec 31, 2004 approximates its fair value. If the acquisition did not result to any implied goodwill. How much is the acquisition cost of the investment?

Elston Company Balance Sheet December 31, 2004 Assets 800,000 Liabilities 100,000 Capitalstock 400,000 Retainedearnings 300,000 Totalequities 800,000 Alley Company Balance Sheet December 31, 2004 Assets 600,000 Liabilities 150,000 Capitalstock 370,000 Retainedearnings 80,000 Totalequities 600,000 Elston Co. acquires 30% interest in Alley Company on Dec 31, 2004. The carrying amount of Alley's net assers on Dec 31, 2004 approximates its fair value. If the acquisition did not result to any implied goodwill. How much is the acquisition cost of the investment?

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

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

Section: Chapter Questions

Problem 1BCRQ

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