On July 1, 20X1, Pushway Corporation issued 100,000 shares of common stock in exchange for all of Stroker Company’s common stock. The Pushway stock issued had a market value of $500,000 on the date of the exchange. Following are the July 1, 20X1, pre-acquisition balance sheets of Pushway and Stroker, plus fair value information for Stroker’s assets and liabilities. Stroker Pushway Book Value Fair Value Assets Current assets $ 300,000 $ 100,000 $ 100,000 Long-term assets 600,000 400,000 470,000 Total assets $ 900,000 $ 500,000 $ 570,000 Liabilities Current liabilities $ 200,000 $ 50,000 $ 50,000 Long-term liabilities 250,000 100,000 120,000 Total liabilities 450,000 150,000 $ 170,000 Stockholders' equity Common stock 300,000 250,000 Retained earnings 150,000 100,000 Total stockholders' equity 450,000 350,000 Total liabilities and equity $ 900,000 $ 500,000 What amount will be shown on the July 1, 20X1, consolidated balance sheet for the following: Total equity
On July 1, 20X1, Pushway Corporation issued 100,000 shares of common stock in exchange for all of Stroker Company’s common stock. The Pushway stock issued had a market value of $500,000 on the date of the exchange. Following are the July 1, 20X1, pre-acquisition balance sheets of Pushway and Stroker, plus fair value information for Stroker’s assets and liabilities. Stroker Pushway Book Value Fair Value Assets Current assets $ 300,000 $ 100,000 $ 100,000 Long-term assets 600,000 400,000 470,000 Total assets $ 900,000 $ 500,000 $ 570,000 Liabilities Current liabilities $ 200,000 $ 50,000 $ 50,000 Long-term liabilities 250,000 100,000 120,000 Total liabilities 450,000 150,000 $ 170,000 Stockholders' equity Common stock 300,000 250,000 Retained earnings 150,000 100,000 Total stockholders' equity 450,000 350,000 Total liabilities and equity $ 900,000 $ 500,000 What amount will be shown on the July 1, 20X1, consolidated balance sheet for the following: Total equity
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 25E
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On July 1, 20X1, Pushway Corporation issued 100,000 shares of common stock in exchange for all of Stroker Company’s common stock. The Pushway stock issued had a market value of $500,000 on the date of the exchange. Following are the July 1, 20X1, pre-acquisition balance sheets of Pushway and Stroker, plus fair value information for Stroker’s assets and liabilities.
| Stroker | |||||||||
| Pushway | Book Value | Fair Value | |||||||
| Assets | |||||||||
| Current assets | $ | 300,000 | $ | 100,000 | $ | 100,000 | |||
| Long-term assets | 600,000 | 400,000 | 470,000 | ||||||
| Total assets | $ | 900,000 | $ | 500,000 | $ | 570,000 | |||
| Liabilities | |||||||||
| Current liabilities | $ | 200,000 | $ | 50,000 | $ | 50,000 | |||
| Long-term liabilities | 250,000 | 100,000 | 120,000 | ||||||
| Total liabilities | 450,000 | 150,000 | $ | 170,000 | |||||
| Common stock | 300,000 | 250,000 | |||||||
| 150,000 | 100,000 | ||||||||
| Total stockholders' equity | 450,000 | 350,000 | |||||||
| Total liabilities and equity | $ | 900,000 | $ | 500,000 | |||||
- What amount will be shown on the July 1, 20X1, consolidated balance sheet for the following:
- Total equity
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