TruData Webstat Webstat Book Values Book Values Falr Values Revenues (1/1 to 7/1). . Expenses (1/1 to 7/1). Retained earnings, 1/1. Cash and receivables. $(250,000) 170,000 (130,000) 140,000 190,000 230,000 400,000 100,000 (540,000) (300,000) (10,000) $(130,000) 80,000 (150,000) 60,000 $ 60,000 Inventory... Patented technology (net). Land....... Buildings and equipment (net) 145,000 180,000 175,000 200,000 225,000 200,000 75,000 (360,000) (70,000) (30,000) 75,000 Liabilities.... (350,000) Common stock Additional paid-in capital....
TruData Webstat Webstat Book Values Book Values Falr Values Revenues (1/1 to 7/1). . Expenses (1/1 to 7/1). Retained earnings, 1/1. Cash and receivables. $(250,000) 170,000 (130,000) 140,000 190,000 230,000 400,000 100,000 (540,000) (300,000) (10,000) $(130,000) 80,000 (150,000) 60,000 $ 60,000 Inventory... Patented technology (net). Land....... Buildings and equipment (net) 145,000 180,000 175,000 200,000 225,000 200,000 75,000 (360,000) (70,000) (30,000) 75,000 Liabilities.... (350,000) Common stock Additional paid-in capital....
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Problems 15 through 18 are based on the following information:
On July 1, TruData Company issues 10,000 shares of its common stock with a $5 par value and a $40 fair value in exchange for all of Webstat Company’s outstanding voting shares. Webstat’s precombination book and fair values are shown below along with book values for TruData’s accounts.
On its acquisition-date consolidated balance sheet, what amount should TruData report as
a. $130,000
b. $210,000
c. $260,000
d. $510,000
Transcribed Image Text:TruData
Webstat
Webstat
Book Values
Book Values
Falr Values
Revenues (1/1 to 7/1). .
Expenses (1/1 to 7/1).
Retained earnings, 1/1.
Cash and receivables.
$(250,000)
170,000
(130,000)
140,000
190,000
230,000
400,000
100,000
(540,000)
(300,000)
(10,000)
$(130,000)
80,000
(150,000)
60,000
$ 60,000
Inventory...
Patented technology (net).
Land.......
Buildings and equipment (net)
145,000
180,000
175,000
200,000
225,000
200,000
75,000
(360,000)
(70,000)
(30,000)
75,000
Liabilities....
(350,000)
Common stock
Additional paid-in capital....
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 3 steps with 1 images
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
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education