The financial statement amounts for the Atwood Company and the Franz Company as of December 31, 2021, are presented below. Also included are the fair values for Franz Company's net assets (all numbers are in thousands). Atwood Franz Co. Franz Co. Book Value Book Value Fair Value 12/31/2021 12/31/2021 12/31/2021 Cash $ 870 $ 240 $ 240 Receivables 660 600 600 Inventory 1,230 420 580 Land 1,800 260 250 Buildings (net) 1,800 540 650 Equipment (net) 660 380 400 Accounts payable (570 ) (240 ) (240 ) Accrued expenses (270 ) (60 ) (60 ) Long-term liabilities (2,700 ) (1,020 ) (1,120 ) Common stock ($20 par) (1,980 ) Common stock ($5 par) (420 ) Additional paid-in capital (210 ) (180 ) Retained earnings 1/1/18 (1,170 ) (480 ) Revenues (2,880 ) (660 ) Expenses 2,760 620 Note: Parenthesis indicate a credit balance Assume an acquisition business combination took place at December 31, 2021. Atwood issued 50 shares of its common stock with a fair value of $35 per share for all of the outstanding common shares of Franz. Stock issuance costs of $15 (in thousands) and direct costs of $10 (in thousands) were paid. Compute consolidated equipment (net) at the date of the acquisition.
The financial statement amounts for the Atwood Company and the Franz Company as of December 31, 2021, are presented below. Also included are the fair values for Franz Company's net assets (all numbers are in thousands). Atwood Franz Co. Franz Co. Book Value Book Value Fair Value 12/31/2021 12/31/2021 12/31/2021 Cash $ 870 $ 240 $ 240 Receivables 660 600 600 Inventory 1,230 420 580 Land 1,800 260 250 Buildings (net) 1,800 540 650 Equipment (net) 660 380 400 Accounts payable (570 ) (240 ) (240 ) Accrued expenses (270 ) (60 ) (60 ) Long-term liabilities (2,700 ) (1,020 ) (1,120 ) Common stock ($20 par) (1,980 ) Common stock ($5 par) (420 ) Additional paid-in capital (210 ) (180 ) Retained earnings 1/1/18 (1,170 ) (480 ) Revenues (2,880 ) (660 ) Expenses 2,760 620 Note: Parenthesis indicate a credit balance Assume an acquisition business combination took place at December 31, 2021. Atwood issued 50 shares of its common stock with a fair value of $35 per share for all of the outstanding common shares of Franz. Stock issuance costs of $15 (in thousands) and direct costs of $10 (in thousands) were paid. Compute consolidated equipment (net) at the date of the acquisition.
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
Chapter12: Intangibles
Section: Chapter Questions
Problem 18E
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The financial statement amounts for the Atwood Company and the Franz Company as of December 31, 2021, are presented below. Also included are the fair values for Franz Company's net assets (all numbers are in thousands).
Atwood | Franz Co. | Franz Co. | |||||||||
Book Value | Book Value | Fair Value | |||||||||
12/31/2021 | 12/31/2021 | 12/31/2021 | |||||||||
Cash | $ | 870 | $ | 240 | $ | 240 | |||||
Receivables | 660 | 600 | 600 | ||||||||
Inventory | 1,230 | 420 | 580 | ||||||||
Land | 1,800 | 260 | 250 | ||||||||
Buildings (net) | 1,800 | 540 | 650 | ||||||||
Equipment (net) | 660 | 380 | 400 | ||||||||
Accounts payable | (570 | ) | (240 | ) | (240 | ) | |||||
Accrued expenses | (270 | ) | (60 | ) | (60 | ) | |||||
Long-term liabilities | (2,700 | ) | (1,020 | ) | (1,120 | ) | |||||
Common stock ($20 par) | (1,980 | ) | |||||||||
Common stock ($5 par) | (420 | ) | |||||||||
Additional paid-in capital | (210 | ) | (180 | ) | |||||||
(1,170 | ) | (480 | ) | ||||||||
Revenues | (2,880 | ) | (660 | ) | |||||||
Expenses | 2,760 | 620 | |||||||||
Note: Parenthesis indicate a credit balance
Assume an acquisition business combination took place at December 31, 2021. Atwood issued 50 shares of its common stock with a fair value of $35 per share for all of the outstanding common shares of Franz. Stock issuance costs of $15 (in thousands) and direct costs of $10 (in thousands) were paid.
Compute consolidated equipment (net) at the date of the acquisition.
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