The following are the balance sheets of Entity A and Entity B as of June 30, 2021: Entity A Current Assets 500 Noncurrent Assets 1,300 Capital Stock - 100 Shares 300 Retained Earnings 800 Current Liabilities 300 Non Current Liabilities 400 Entity B Current Assets 700 Noncurrent Assets 3,000 Capital Stock -60 shares 600 Retained Earnings 1,400 Current Liabilities 600 Non Current Liabilities 1,100 On July 1, 2021, A acquired all issued shares of B giving in exchange 2.50 A shares for each ordinary shares of B in order for B to obtain public listing. The fair value of each ordinary share of B at July 1, is 40., while the quoted market price of A's ordinary shares is 16. The fair values of A's identifiable net assets at acquisition date are the same of their carrying amounts, except for noncurrent assets whose fair value was 1,500. On the other hand, the fair value of the net assets of B are approximately their carrying amounts. 30. Calculate the goodwill(excess) resulting from the combination Select the correct response: O 400 O 300 O (400) O 360

The following are the balance sheets of Entity A and Entity B as of June 30, 2021: Entity A Current Assets 500 Noncurrent Assets 1,300 Capital Stock - 100 Shares 300 Retained Earnings 800 Current Liabilities 300 Non Current Liabilities 400 Entity B Current Assets 700 Noncurrent Assets 3,000 Capital Stock -60 shares 600 Retained Earnings 1,400 Current Liabilities 600 Non Current Liabilities 1,100 On July 1, 2021, A acquired all issued shares of B giving in exchange 2.50 A shares for each ordinary shares of B in order for B to obtain public listing. The fair value of each ordinary share of B at July 1, is 40., while the quoted market price of A's ordinary shares is 16. The fair values of A's identifiable net assets at acquisition date are the same of their carrying amounts, except for noncurrent assets whose fair value was 1,500. On the other hand, the fair value of the net assets of B are approximately their carrying amounts. 30. Calculate the goodwill(excess) resulting from the combination Select the correct response: O 400 O 300 O (400) O 360

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter24: Analysis Of Financial Statements

Section: Chapter Questions

Problem 10SPB: RATIO ANALY SIS OF COMPARATI VE FIN ANCIAL STATE MENT S Refer to the financial statements in Problem...

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