Please included a brief explanation thank you The trial balances for Walla Corporation and Au Inc. at December 31, Year 4, just before the transactiondescribed below, were as follows:Walla$293,000613,000513,000413,000213,000613,000813,000Au Inc.Current assets$203,000463,000283,000323,00063,000253,000653,000343,000LandOther tangible assetsLiabilitiesCommon sharesRetained eamings, 1/1/YearRevenuesExpenses633,000On December 31, Year 4, Walla purc hased all of the outstanding shares of Au Inc. by issuing 25,000common shares with a market value of $30 per share. The carrying amounts of Au Inc.'s assets andliabilities were equal to fair value except for the following:Fair ValueLand$513,000Liabilities343,000Required:What are the balances for the land, goodwill, investment in common shares, liabilities, common shares,and revenues after the transaction noted above on (Leave no cells blank - be certain to enter "0"wherever required.)(a) Walla's separate entity financ ial statements?(b) Au Inc.'s separate entity financial statements?(c) Walla's consolidated financial statements?

Goodwill is an intangible asset that is recorded while acquiring an asset. Iris subject to…

Answered: The trial balances for Walla…

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter20: Corporations And Partnerships

Section: Chapter Questions

Problem 59P

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As of December 31, 20X4, Blue Co.’s statement of financial position shows the book values of $15,000,000 for total assets and $12,000,000 for total liabilities. Also on December 31, 20X4, an appraisal shows the fair values of $18,500,000 for total assets and $14,000,000 for total liabilities. Green Co. purchased all of the net assets of Blue Co. on December 31, 20X4 for $5,500,000. What amount of goodwill, if any, did Green Co. record on the acquisition date? a. $2,500,000 b. $1,000,000 c. $4,500,000 d. $0
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On January 1, 2020, AMI Corporation purchased the non-cash net assets of Sheffield Ltd. for $8,087,900. Following is the statement of financial position of Sheffield Ltd. from the company's year-end the previous day: Sheffield Ltd.Statement of Financial PositionAs at December 31, 2019 Cash $630,000 Accounts receivable 554,000 Inventory 2,510,000 Property, plant, and equipment (net) 2,070,000 Land 2,570,000 $8,334,000 Accounts payable $324,000 Common shares 2,520,000 Retained earnings 5,490,000 $8,334,000 As part of the negotiations, AMI and Sheffield agreed on the following fair values for the items on Sheffield's statement of financial position: Accounts receivable $552,400 Inventory 2,265,000 Property, plant, and equipment 1,870,000 Land 3,620,000 Accounts payable 313,500 Prepare the journal entry on the books of AMI Corporation to record the purchase, assuming that instead of buying the net assets of…
On January 1, 20x1, an entity has an outstanding note payable with carrying amount of P1,000,000. On this date, the debtor agrees to receive equipment with historical cost of P1,800,000, accumulated depreciation of P900,000 and fair value of P850,000 in full settlement of the note payable. Requirement: Compute for the gain or loss on the derecognition of the note payable.
On April 1, year 1, Dart Co. paid $620,000 for all the issued and outstanding common stock of Wall Corp. The recorded assets and liabilities of Wall Corp. on April 1, year 1, follow: Cash $ 60,000 Inventory 180,000 Property and equipment (net of accumulated depreciation of $220,000) 320,000 Goodwill 100,000 Liabilities (120,000) Net assets $ 540,000 On April 1, year 1, Wall’s inventory had a fair value of $150,000, and the property and equipment (net) had a fair value of $380,000. What is the amount of goodwill resulting from the business combination?
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