1. Winston Corporation purchases all of Harley Company's stock on June 1 forP1,200,000. At that date, Harley had the following book and market values:Book ValueMarket ValueCash and ReceivablesP80,000P80.000Inventory230,000270,000Plant Assets (net)900,0001.230,000Cost of Goods Sold750,000Operating Expenses170,000Dividends20,000Liabilities600,000600,000Common Stock25,000Retained Earnings525,000Sales1,000,000What amount of retained earnings is eliminated in the acquisition dateworksheet elimination?

Retained earnings are the amount that is left after paying all the costs, income taxes, and…

Answered: P1,200,000. At that date, Harley had…

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P1,200,000. At that date, Harley had the following book and Book Value Market Val blon

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 6MCQ: Ames Corporation repurchases 10,000 shares of its common stock for $12 per share. The shares were...

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Question

1. Winston Corporation purchases all of Harley Company's stock on June 1 for
P1,200,000. At that date, Harley had the following book and market values:
Book Value
Market Value
Cash and Receivables
P80,000
P80.000
Inventory
230,000
270,000
Plant Assets (net)
900,000
1.230,000
Cost of Goods Sold
750,000
Operating Expenses
170,000
Dividends
20,000
Liabilities
600,000
600,000
Common Stock
25,000
Retained Earnings
525,000
Sales
1,000,000
What amount of retained earnings is eliminated in the acquisition date
worksheet elimination?

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