The trial balances for Walla Corporation and Au Inc. at December 31, Year 4, just before the transaction described below, were as follows: Walla Au Inc. $288,000 608,000 Current assets $198,000 Land Other tangible assets Liabilities 458,000 278,000 318,000 508,000 408,000 208,000 608,000 808,000 628,000 Common shares 58,000 248,000 648,000 338,000 Retained earnings, 1/1/Year 4 Revenues Expenses On December 31, Year 4, Walla purchased all of the outstanding shares of Au Inc. by issuing 28,000 common shares with a market value of $25 per share. The carrying amounts of Au Inc.'s assets and liabilities were equal to fair value except for the following: Fair Value Land $508,000 Other tangible assets 316,000 338,000 Liabilities
The trial balances for Walla Corporation and Au Inc. at December 31, Year 4, just before the transaction described below, were as follows: Walla Au Inc. $288,000 608,000 Current assets $198,000 Land Other tangible assets Liabilities 458,000 278,000 318,000 508,000 408,000 208,000 608,000 808,000 628,000 Common shares 58,000 248,000 648,000 338,000 Retained earnings, 1/1/Year 4 Revenues Expenses On December 31, Year 4, Walla purchased all of the outstanding shares of Au Inc. by issuing 28,000 common shares with a market value of $25 per share. The carrying amounts of Au Inc.'s assets and liabilities were equal to fair value except for the following: Fair Value Land $508,000 Other tangible assets 316,000 338,000 Liabilities
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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