Top Corporation acquired 100% of Sun Corporation’s common stock on December 31,2019. Balance sheet data for the two companies immediately following the acquisition TOP SUN Cash $ 49,000 $ 30,000 Accounts Receivable 110,000 45,000 Inventory 130,000 70,000 Land 80,000 25,000 Buildings & Equipment 277,000 235,000 Investment in Sun Corporation 198,000 Total Assets $844,000 $405,000 Accounts Payable $ 61,500 $ 28,000 Taxes Payable 95,000 37,000 Bonds Payable 280,000 200,000 Common Stock 150,000 50,000 Retained Earnings 257,500 90,000 Total $844,000 $405,000 At the date of the business combination, the book values of Sun’s net assets and liabilities equal fair value . what is the goodwill total that should appear in the consolidated balance sheet prepared immediately after the business combination? Select one: a. 58,000 b. 23,000 c. 0 d. 43,000
Top Corporation acquired 100% of Sun Corporation’s common stock on December 31,2019. Balance sheet data for the two companies immediately following the acquisition TOP SUN Cash $ 49,000 $ 30,000 Accounts Receivable 110,000 45,000 Inventory 130,000 70,000 Land 80,000 25,000 Buildings & Equipment 277,000 235,000 Investment in Sun Corporation 198,000 Total Assets $844,000 $405,000 Accounts Payable $ 61,500 $ 28,000 Taxes Payable 95,000 37,000 Bonds Payable 280,000 200,000 Common Stock 150,000 50,000 Retained Earnings 257,500 90,000 Total $844,000 $405,000 At the date of the business combination, the book values of Sun’s net assets and liabilities equal fair value . what is the goodwill total that should appear in the consolidated balance sheet prepared immediately after the business combination? Select one: a. 58,000 b. 23,000 c. 0 d. 43,000
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 30E
Related questions
Question
Top Corporation acquired 100% of Sun Corporation’s common stock on December 31,2019. Balance sheet data for the two companies immediately following the acquisition
TOP SUN
Cash $ 49,000 $ 30,000
Accounts Receivable 110,000 45,000
Inventory 130,000 70,000
Land 80,000 25,000
Buildings & Equipment 277,000 235,000
Investment in Sun Corporation 198,000
Total Assets $844,000 $405,000
Accounts Payable $ 61,500 $ 28,000
Taxes Payable 95,000 37,000
Bonds Payable 280,000 200,000
Common Stock 150,000 50,000
Retained Earnings 257,500 90,000
Total $844,000 $405,000
At the date of the business combination, the book values of Sun’s net assets and liabilities equal fair value . what is the goodwill total that should appear in the consolidated balance sheet prepared immediately after the business combination?
Select one:
a. 58,000
b. 23,000
c. 0
d. 43,000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Auditing: A Risk Based-Approach (MindTap Course L…
Accounting
ISBN:
9781337619455
Author:
Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:
Cengage Learning