Mainline Produce Corporation acquired all the outstanding common stock of Iceberg Lettuce Corporation for $32,000,000 in cash. The book values and fair values of Iceberg's assets and liabilities were as follows: Book Value Fair Value $ 12,000,000 $ 15,000,000 21,400,000 3,600,000 8,000,000 14,000,000 Current assets Property, plant, and equipment Other assets 27,400,000 4,600,000 8,000,000 13,000,000 Current liabilities Long-term liabilities Required: Calculate the amount paid for goodwill. (Enter your answer in millions (i.e. 5,000,000 should be entered as 5).) Amount paid for goodwill million

Mainline Produce Corporation acquired all the outstanding common stock of Iceberg Lettuce Corporation for $32,000,000 in cash. The book values and fair values of Iceberg's assets and liabilities were as follows: Book Value Fair Value $ 12,000,000 $ 15,000,000 21,400,000 3,600,000 8,000,000 14,000,000 Current assets Property, plant, and equipment Other assets 27,400,000 4,600,000 8,000,000 13,000,000 Current liabilities Long-term liabilities Required: Calculate the amount paid for goodwill. (Enter your answer in millions (i.e. 5,000,000 should be entered as 5).) Amount paid for goodwill million

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

Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity

Section: Chapter Questions

Problem 6RE: Oz Corporation has the following assets at year-end: Patents (net), 26,000; Land, 50,000; Buildings,...

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Oz Corporation has the following assets at year-end: Patents (net), 26,000; Land, 50,000; Buildings, 175,000; Accumulated Depreciation: Buildings, 57,500; Investment in Held-to-Maturity Bonds, 12,000; Equipment, 95,000; and Accumulated Depreciation: Equipment, 25,000. Prepare the property, plant, and equipment section of Ozs year-end balance sheet.
Mainline Produce Corporation acquired all the outstanding common stock of Iceberg Lettuce Corporation for $30,000,000 in cash. The book values and fair values of Iceberg’s assets and liabilities were as follows: Book Value Fair ValueCurrent assets $11,400,000 $ 14,400,000Property, plant, and equipment 20,200,000 26,200,000Other assets 3,400,000 4,400,000Current liabilities 7,800,000 7,800,000Long-term liabilities 13,200,000 12,200,000Required:Calculate the amount paid for goodwill.
Johnson Corporation acquired all of the outstanding common stock of Smith Corporation for $11,000,000 in cash. The book value of Smith’s net assets (assets minus liabilities) was $7,800,000. The fair values of all of Smith’s assets and liabilities were equal to their book values with the following exceptions: Book Value Fair ValueReceivables $ 1,300,000 $1,100,000Property, plant, and equipment 8,000,000 9,400,000Intangible assets 200,000 1,200,000 Required:Calculate the amount paid for goodwill.
Northern Equipment Corporation purchased all the outstanding common stock of Pioneer Equipment Rental for $5,600,000 in cash. The book values and fair values of Pioneer’s assets and liabilities were Book Value Fair ValueAccounts Receivable $ 750,000 $ 650,000Buildings 4,100,000 4,800,000Equipment 110,000 200,000Accounts Payable (750,000) (750,000)Net assets $ 4,210,000 $ 4,900,000Required:1. Calculate the amount Northern Equipment should report for goodwill.2. Record Northern Equipment’s acquisition of Pioneer Equipment Rental.
During the current year, Brewer Company acquired all of the outstanding common stock of Miller Inc. paying $11,900,000 cash. The book values and fair values of Miller's assets and liabilities acquired are listed below: Book Value Fair Value Accounts receivable $ 1,750,000 $ 1,575,000 Inventories 2,600,000 3,900,000 Property, plant, and equipment 8,900,000 11,525,000 Accounts payable 2,900,000 2,900,000 Bonds payable 4,400,000 4,025,000 Prepare the journal entry to record the acquisition by Brewer Company.
Pro-tech Software acquired all of the outstanding stock of Reliable Software for $19 million. The book value of Reliable’s net assets (assets minus liabilities) was $8.8 million. The fair values of Reliable’s assets and liabilities equaled their book values with the exception of certain intangible assets whose fair values exceeded book values by $3.0 million. Calculate the amount paid for goodwill.
Woolco, Inc., purchased all the outstanding stock of Paint, Inc., for $980,000. Woolco also paid $10,000 in direct acquisition costs. Just before the investment, the two companies had the following balance sheets: Assets Woolco, Inc. Paint, Inc. Accounts receivable . . . . . . . . . . . . . . . $ 900,000 $ 500,000 Inventory . . . . . . . . . . . . . . . . . . . . . . . . 600,000 200,000 Depreciable fixed assets (net) . . . . . . . . 1,500,000 600,000 Total assets. . . . . . . . . . . . . . . . . . . . . $3,000,000 $1,300,000 Liabilities and Equity Current liabilities . . . . . . . . . . . . . . . . . . $ 950,000 $ 400,000 Bonds payable . . . . . . . . . . . . . . . . . . . 500,000 200,000 Common stock ($10 par). . . . . . . . . . . . 400,000 300,000 Paid-in capital in excess of par . .…
On March 31, 2024, Wolfson Corporation acquired all of the outstanding common stock of Barney Corporation for $17,400,000 in cash. The book values and fair values of Barney’s assets and liabilities were as follows: Book Value Fair Value Current assets $ 6,400,000 $ 7,900,000 Property, plant, and equipment 11,400,000 14,400,000 Other assets 1,040,000 1,540,000 Current liabilities 4,400,000 4,400,000 Long-term liabilities 6,400,000 5,900,000 Required: Calculate the amount paid for goodwill.
On March 31, 2021, Wolfson Corporation acquired all of the outstanding common stock of Barney Corporation for $17,000,000 in cash. The book values and fair values of Barney’s assets and liabilities were as follows: Book Value FairValueCurrent assets $ 6,000,000 $7,500,000Property, plant, and equipment 11,000,000 14,000,000Other assets 1,000,000 1,500,000Current liabilities 4,000,000 4,000,000Long-term liabilities 6,000,000 5,500,000 Required:Calculate the amount paid for goodwill.
Cake Company acquired the following plant assets during the current year.· Equipment - Acquired at an invoice price of P600,000, subject to a 5% cash discount which was not taken.· Land - Acquired by issuing 10,000 shares of P50 par value when the market price of the share was P120. The shares issued are treasury shares which had been acquired at a cost of P90 per share. The fair value of the land is P1,100,000.· Machinery - Acquired at a cost of P275,000. Installation cost was P7,000, trial run and other testing cost P18,000, and construction of base, P10,000.What is the total increase in property, plant and equipment as a result of plant asset acquisitions? P1,770,000 P1,970,000 P1,980,000 P2,080,000
On January 1, 20x8, Bristol Company acquired 80 percent of Animation Company's common stock for $280,000 cash. At that date, Animation reported common stock outstanding of $200,000 and retained earnings of $100,000, and the fair value of the noncontrolling interest was $70,000. The book values and fair values of Animation's assets and liabilities were equal, except for other intangible assets which had a fair value $50,000 greater than book value and an 8-year remaining life. Animation reported the following data for 20x8 and 20x9: Year Comprehensive Income Dividends Paid20x8 $30,000 $5,00020x9 $45,000 $10,000 Bristol reported net income of $100,000 and paid dividends of $30,000 for both the years. 1. Based on the preceding information, what is the amount of consolidated comprehensive income reported for 20x8? 2. What is the amount of consolidated comprehensive income reported for…
On January 1, 20x8, Bristol Company acquired 80 percent of Animation Company's common stock for $280,000 cash. At that date, Animation reported common stock outstanding of $200,000 and retained earnings of $100,000, and the fair value of the noncontrolling interest was $70,000. The book values and fair values of Animation's assets and liabilities were equal, except for other intangible assets which had a fair value $50,000 greater than book value and an 8-year remaining life. Animation reported the following data for 20x8 and 20x9: Year Comprehensive Income Dividends Paid20x8 $30,000 $5,00020x9 $45,000 $10,000 Bristol reported net income of $100,000 and paid dividends of $30,000 for both the years. What is the amount of consolidated comprehensive income reported for 20x9? What is the amount of comprehensive income attributable to the controlling interest for 20x8? What is the…