On January 1, Park Corporation and Strand Corporation had condensed balance sheets as follows: Park $ 116,000 107,500 $ 223,500 $ 52,500 66,000 105,000 Total liabilities and equities $ 223,500 Strand $ 31,300 49,200 $ 80,500 $ 30,500 Current assets Noncurrent assets Total assets Current liabilities Long-term debt Stockholders' equity 50,000 $ 80,500 On January 2, Park borrowed $70,400 and used the proceeds to obtain 80 percent of the outstanding common shares of Strand. The acquisition price was considered proportionate to Strand's total fair value. The $70,400 debt is payable in 10 equal annual principal payments, plus interest, beginning December 31. The excess fair value of the investment over the underlying book value of the acquired net assets is allocated to inventory (60 percent) and to goodwill (40 percent). On a consolidated balance sheet as of January 2, what should be the amount for noncurrent liabilities?
On January 1, Park Corporation and Strand Corporation had condensed balance sheets as follows: Park $ 116,000 107,500 $ 223,500 $ 52,500 66,000 105,000 Total liabilities and equities $ 223,500 Strand $ 31,300 49,200 $ 80,500 $ 30,500 Current assets Noncurrent assets Total assets Current liabilities Long-term debt Stockholders' equity 50,000 $ 80,500 On January 2, Park borrowed $70,400 and used the proceeds to obtain 80 percent of the outstanding common shares of Strand. The acquisition price was considered proportionate to Strand's total fair value. The $70,400 debt is payable in 10 equal annual principal payments, plus interest, beginning December 31. The excess fair value of the investment over the underlying book value of the acquired net assets is allocated to inventory (60 percent) and to goodwill (40 percent). On a consolidated balance sheet as of January 2, what should be the amount for noncurrent liabilities?
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 16P: Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and...
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