ADVANCED FIN.ACCT.(LL)-W/ACCESS>CUSTOM<
11th Edition
ISBN: 9781260034509
Author: Christensen
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Question
Chapter 1, Problem 1.38P
a.
To determine
To compute: The number of shares issue to acquire Company C.
Introduction: Internal expansion refers to situation in a company forms a subsidiary by transferring some of its assets and liabilities and in exchange of ownership shares. Shares of the subsidiary is either provided to the shareholders in addition to their existing shares (Spin off) or in exchange of their existing shares (split off).
b.
To determine
To compute: The total market value of shares issued by Company E.
Introduction: Internal expansion refers to situation in a company forms a subsidiary by transferring some of its assets and liabilities and in exchange of ownership shares. Shares of the subsidiary is either provided to the shareholders in addition to their existing shares (Spin off) or in exchange of their existing shares (split off).
c.
To determine
To compute: The fair value of inventory at combination date holds by Company C.
Introduction: Internal expansion refers to situation in a company forms a subsidiary by transferring some of its assets and liabilities and in exchange of ownership shares. Shares of the subsidiary is either provided to the shareholders in addition to their existing shares (Spin off) or in exchange of their existing shares (split off).
d.
To determine
To compute: The fair value of identifiable net assets at combination date holds by Company C.
Introduction: Internal expansion refers to situation in a company forms a subsidiary by transferring some of its assets and liabilities and in exchange of ownership shares. Shares of the subsidiary is either provided to the shareholders in addition to their existing shares (Spin off) or in exchange of their existing shares (split off).
e.
To determine
To compute: The
Introduction: Internal expansion refers to situation in a company forms a subsidiary by transferring some of its assets and liabilities and in exchange of ownership shares. Shares of the subsidiary is either provided to the shareholders in addition to their existing shares (Spin off) or in exchange of their existing shares (split off).
f.
To determine
To compute: The balance in
Introduction: Internal expansion refers to situation in a company forms a subsidiary by transferring some of its assets and liabilities and in exchange of ownership shares. Shares of the subsidiary is either provided to the shareholders in addition to their existing shares (Spin off) or in exchange of their existing shares (split off).
g.
To determine
To compute: The amount of
Introduction: Internal expansion refers to situation in a company forms a subsidiary by transferring some of its assets and liabilities and in exchange of ownership shares. Shares of the subsidiary is either provided to the shareholders in addition to their existing shares (Spin off) or in exchange of their existing shares (split off).
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ABC Corp. acquired all the assets and liabilities of XYZ Corporation by issuing shares of its common stock. On January 1, 2020, partial balance sheet data for the companies prior to the business combination and immediately following the combination is provided.
ABC Corp.
XYZ Corp.
Combination
Cash
65,000
25,000
90,000
Accounts receivable
72,000
20,000
94,000
Inventory
33,000
45,000
88,000
PPE (net)
400,000
150,000
650,000
Goodwill
?
Total Assets
570,000
240,000
?
Accounts payable
50,000
25,000
75,000
Bonds payable
250,000
100,000
350,000
Common stock, P2 par
100,000
25,000
160,000
Share Premium
65,000
20,000
245,000
Retained earnings
105,000
70,000
?
Total Liab and Equity
570,000
240,000
?
What is the fair value of the net assets held by XYZ Corp at the date of combination?
Group of answer choices
115,000
270,000
497,000…
ABC Corp. acquired all the assets and liabilities of XYZ Corporation by issuing shares of its common stock. On January 1, 2020, partial balance sheet data for the companies prior to the business combination and immediately following the combination is provided.
ABC Corp.
XYZ Corp.
Combination
Cash
65,000
25,000
90,000
Accounts receivable
72,000
20,000
94,000
Inventory
33,000
45,000
88,000
PPE (net)
400,000
150,000
650,000
Goodwill
?
Total Assets
570,000
240,000
?
Accounts payable
50,000
25,000
75,000
Bonds payable
250,000
100,000
350,000
Common stock, P2 par
100,000
25,000
160,000
Share Premium
65,000
20,000
245,000
Retained earnings
105,000
70,000
?
Total Liab and Equity
570,000
240,000
?
What amount of goodwill be reported by the combined entity immediately following the combination?
Group of answer choices
a. 13,000
b.…
ABC Corp. acquired all the assets and liabilities of XYZ Corporation by issuing shares of its common stock. On January 1, 2020, partial balance sheet data for the companies prior to the business combination and immediately following the combination is provided.
ABC Corp.
XYZ Corp.
Combination
Cash
65,000
25,000
90,000
Accounts receivable
72,000
20,000
94,000
Inventory
33,000
45,000
88,000
PPE (net)
400,000
150,000
650,000
Goodwill
?
Total Assets
570,000
240,000
?
Accounts payable
50,000
25,000
75,000
Bonds payable
250,000
100,000
350,000
Common stock, P2 par
100,000
25,000
160,000
Share Premium
65,000
20,000
245,000
Retained earnings
105,000
70,000
?
Total Liab and Equity
570,000
240,000
?
What is the fair value of the net assets held by XYZ Corp at the date of combination?
a. 270,000
b. 227,000
c. 497,000
d. 115,000
Chapter 1 Solutions
ADVANCED FIN.ACCT.(LL)-W/ACCESS>CUSTOM<
Ch. 1 - What types of circumstances would encourage...Ch. 1 - How would the decision to dispose of a segment of...Ch. 1 - Prob. 1.3QCh. 1 - Prob. 1.4QCh. 1 - Prob. 1.5QCh. 1 - Prob. 1.6QCh. 1 - Prob. 1.8QCh. 1 - Prob. 1.9QCh. 1 - Prob. 1.10QCh. 1 - Prob. 1.11Q
Ch. 1 - Prob. 1.12QCh. 1 - Prob. 1.13QCh. 1 - Prob. 1.14QCh. 1 - Prob. 1.15QCh. 1 - Within the measurement period following a business...Ch. 1 - Prob. 1.17QCh. 1 - Prob. 1.1CCh. 1 - Prob. 1.3CCh. 1 - Prob. 1.4CCh. 1 - Risks Associated with Acquisitions Not all...Ch. 1 - Prob. 1.8CCh. 1 - Prob. 1.1.1ECh. 1 - Prob. 1.1.2ECh. 1 - Prob. 1.1.3ECh. 1 - Multiple-Choice Questions on Complex Organizations...Ch. 1 - Prob. 1.1.5ECh. 1 - Prob. 1.2.1ECh. 1 - Prob. 1.2.2ECh. 1 - Multiple-Choice Questions on Recording Business...Ch. 1 - Prob. 1.2.4ECh. 1 - Multiple-Choice Questions on Recording Business...Ch. 1 - Multiple-Choice Questions on Reported Balances...Ch. 1 - Multiple-Choice Questions on Reported Balances...Ch. 1 - Prob. 1.3.3ECh. 1 - Prob. 1.3.4ECh. 1 - Prob. 1.4.1ECh. 1 - Prob. 1.4.2ECh. 1 - Prob. 1.4.3ECh. 1 - Prob. 1.4.4ECh. 1 - Prob. 1.4.5ECh. 1 - Prob. 1.5ECh. 1 - Prob. 1.6ECh. 1 - Prob. 1.7ECh. 1 - Prob. 1.8ECh. 1 - Prob. 1.9ECh. 1 - Prob. 1.10ECh. 1 - Prob. 1.11ECh. 1 - Goodwill Recognition Spur Corporation reported the...Ch. 1 - Acquisition Using Debentures Planter Corporation...Ch. 1 - Bargain Purchase Using the data resented in E1-13,...Ch. 1 - Prob. 1.15ECh. 1 - Prob. 1.16ECh. 1 - Prob. 1.17ECh. 1 - Prob. 1.18ECh. 1 - Prob. 1.19ECh. 1 - Prob. 1.20ECh. 1 - Prob. 1.21ECh. 1 - Prob. 1.22ECh. 1 - Prob. 1.23ECh. 1 - Prob. 1.24PCh. 1 - Prob. 1.25PCh. 1 - Prob. 1.26PCh. 1 - Prob. 1.27PCh. 1 - Prob. 1.28PCh. 1 - Prob. 1.29PCh. 1 - Prob. 1.30PCh. 1 - Prob. 1.31PCh. 1 - Prob. 1.32PCh. 1 - Prob. 1.33PCh. 1 - Prob. 1.34PCh. 1 - Prob. 1.35PCh. 1 - Business Combination Following are the balance...Ch. 1 - Prob. 1.37PCh. 1 - Prob. 1.38PCh. 1 - Prob. 1.39PCh. 1 - Prob. 1.40P
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