(a) Introduction: When a company holds 50% or more of the common stock of another company then both the companies are treated as a single entity. In such a case, consolidated statements are prepared. To prepare: Journal entry for business combination.

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Answer 1

Question

Chapter A2, Problem 28E

To determine

(a)

Introduction:

When a company holds 50% or more of the common stock of another company then both the companies are treated as a single entity. In such a case, consolidated statements are prepared.

To prepare:

Journal entry for business combination.

To determine

(b)

Introduction:

When a company holds 50% or more of the common stock of another company then both the companies are treated as a single entity. In such a case, consolidated statements are prepared.

To prepare:

Balance Sheet of A Inc. (post acquisition).

To determine

(c)

Introduction:

When a company holds 50% or more of the common stock of another company then both the companies are treated as a single entity. In such a case, consolidated statements are prepared.

To prepare:

Balance Sheet of D Corporation. (post acquisition).

To determine

(d)

Introduction:

When a company holds 50% or more of the common stock of another company then both the companies are treated as a single entity. In such a case, consolidated statements are prepared.

To calculate:

The goodwill and amount adjusted in the book value.

To determine

(e)

Introduction:

When a company holds 50% or more of the common stock of another company then both the companies are treated as a single entity. In such a case, consolidated statements are prepared.

To prepare:

Consolidated Balance Sheet.

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Man merged with San Corporation in a business combination in which San issued 30,000 shares of its $5 par (current fair value $20 a share) common stock to stockholders of Man in exchange for all their outstanding common stock. The journal entry for the merger includes: a. Debit to investment in common stock of Man company $ 600,000. b. Debit to investment in common stock of Man company $ 450,000. c. Debit to investment in common stock of Man company $ 150,000. d. Debit to investment in common stock of Man company $ 300,000.

E 1-5 Journal entries to record an acquisition with direct costs and fair value/book value differences On January 1, Pop Corporation pays $400,000 cash and also issues 36,000 shares of $10 par common stock with a market value of $660,000 for all the outstanding common shares of Son Corporation. In addition, Pop pays $60,000 for registering and issuing the 36,000 shares and $140,000 for the other direct costs of the business combination, in which Son Corporation is dissolved. Summary balance sheet information for the companies immediately before the merger is as follows (in thousands): Pop Book Value Son Book Value Son Fair Value Cash $ 700 $ 80 $ 80 Inventories 240 160 200 Other current assets 60 40 40 Plant assets—net 520 360 560 Total assets $1,520 $640 $880 Current liabilities $ 320 $ 60 $ 60 Other liabilities 160 100 80 Common stock, $10 par 840 400…

(I need answer in one hour) Please help: West, Inc. holds 100 percent of the common stock of Coast Company, an investment acquired for $680,00. Immediately following the combination, West's net assets have a book value of $1,150,000 and a fair value of $1,390, 000. The book value and the fair ralue of Coast's net assets on the date of combination are $400, 000 and $550,000, respectively Immediately following the combination, a consolidated balance sheet is prepared. What will be the amount of net assets reported in the consolidated balance sheet, prepared immediately folowing the combination? A. $1, 150,000 B . $1, 550, 000 C. $1,700,000 D. $1, 830,000

Answer 2

Question

Chapter A2, Problem 28E

To determine

(a)

Introduction:

When a company holds 50% or more of the common stock of another company then both the companies are treated as a single entity. In such a case, consolidated statements are prepared.

To prepare:

Journal entry for business combination.

To determine

(b)

Introduction:

When a company holds 50% or more of the common stock of another company then both the companies are treated as a single entity. In such a case, consolidated statements are prepared.

To prepare:

Balance Sheet of A Inc. (post acquisition).

To determine

(c)

Introduction:

When a company holds 50% or more of the common stock of another company then both the companies are treated as a single entity. In such a case, consolidated statements are prepared.

To prepare:

Balance Sheet of D Corporation. (post acquisition).

To determine

(d)

Introduction:

When a company holds 50% or more of the common stock of another company then both the companies are treated as a single entity. In such a case, consolidated statements are prepared.

To calculate:

The goodwill and amount adjusted in the book value.

To determine

(e)

Introduction:

When a company holds 50% or more of the common stock of another company then both the companies are treated as a single entity. In such a case, consolidated statements are prepared.

To prepare:

Consolidated Balance Sheet.

Expert Solution & Answer

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Answer 3

Question

Chapter A2, Problem 28E

To determine

(a)

Introduction:

When a company holds 50% or more of the common stock of another company then both the companies are treated as a single entity. In such a case, consolidated statements are prepared.

To prepare:

Journal entry for business combination.

To determine

(b)

Introduction:

When a company holds 50% or more of the common stock of another company then both the companies are treated as a single entity. In such a case, consolidated statements are prepared.

To prepare:

Balance Sheet of A Inc. (post acquisition).

To determine

(c)

Introduction:

When a company holds 50% or more of the common stock of another company then both the companies are treated as a single entity. In such a case, consolidated statements are prepared.

To prepare:

Balance Sheet of D Corporation. (post acquisition).

To determine

(d)

Introduction:

When a company holds 50% or more of the common stock of another company then both the companies are treated as a single entity. In such a case, consolidated statements are prepared.

To calculate:

The goodwill and amount adjusted in the book value.

To determine

(e)

Introduction:

When a company holds 50% or more of the common stock of another company then both the companies are treated as a single entity. In such a case, consolidated statements are prepared.

To prepare:

Consolidated Balance Sheet.

Expert Solution & Answer

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Answer 4

Question

Chapter A2, Problem 28E

To determine

(a)

Introduction:

When a company holds 50% or more of the common stock of another company then both the companies are treated as a single entity. In such a case, consolidated statements are prepared.

To prepare:

Journal entry for business combination.

To determine

(b)

Introduction:

When a company holds 50% or more of the common stock of another company then both the companies are treated as a single entity. In such a case, consolidated statements are prepared.

To prepare:

Balance Sheet of A Inc. (post acquisition).

To determine

(c)

Introduction:

When a company holds 50% or more of the common stock of another company then both the companies are treated as a single entity. In such a case, consolidated statements are prepared.

To prepare:

Balance Sheet of D Corporation. (post acquisition).

To determine

(d)

Introduction:

When a company holds 50% or more of the common stock of another company then both the companies are treated as a single entity. In such a case, consolidated statements are prepared.

To calculate:

The goodwill and amount adjusted in the book value.

To determine

(e)

Introduction:

When a company holds 50% or more of the common stock of another company then both the companies are treated as a single entity. In such a case, consolidated statements are prepared.

To prepare:

Consolidated Balance Sheet.

Expert Solution & Answer

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Answer 5

Chapter A2, Problem 28E

To determine

(a)

Introduction:

When a company holds 50% or more of the common stock of another company then both the companies are treated as a single entity. In such a case, consolidated statements are prepared.

To prepare:

Journal entry for business combination.

To determine

(b)

Introduction:

When a company holds 50% or more of the common stock of another company then both the companies are treated as a single entity. In such a case, consolidated statements are prepared.

To prepare:

Balance Sheet of A Inc. (post acquisition).

To determine

(c)

Introduction:

When a company holds 50% or more of the common stock of another company then both the companies are treated as a single entity. In such a case, consolidated statements are prepared.

To prepare:

Balance Sheet of D Corporation. (post acquisition).

To determine

(d)

Introduction:

When a company holds 50% or more of the common stock of another company then both the companies are treated as a single entity. In such a case, consolidated statements are prepared.

To calculate:

The goodwill and amount adjusted in the book value.

To determine

(e)

Introduction:

When a company holds 50% or more of the common stock of another company then both the companies are treated as a single entity. In such a case, consolidated statements are prepared.

To prepare:

Consolidated Balance Sheet.

Answer 6

Chapter A2, Problem 28E

To determine

(a)

Introduction:

When a company holds 50% or more of the common stock of another company then both the companies are treated as a single entity. In such a case, consolidated statements are prepared.

To prepare:

Journal entry for business combination.

Answer 7

Chapter A2, Problem 28E

To determine

(a)

Introduction:

When a company holds 50% or more of the common stock of another company then both the companies are treated as a single entity. In such a case, consolidated statements are prepared.

To prepare:

Journal entry for business combination.

Answer 8

To determine

(b)

Introduction:

When a company holds 50% or more of the common stock of another company then both the companies are treated as a single entity. In such a case, consolidated statements are prepared.

To prepare:

Balance Sheet of A Inc. (post acquisition).

Answer 9

To determine

(b)

Introduction:

When a company holds 50% or more of the common stock of another company then both the companies are treated as a single entity. In such a case, consolidated statements are prepared.

To prepare:

Balance Sheet of A Inc. (post acquisition).

Answer 10

To determine

(c)

Introduction:

When a company holds 50% or more of the common stock of another company then both the companies are treated as a single entity. In such a case, consolidated statements are prepared.

To prepare:

Balance Sheet of D Corporation. (post acquisition).

Answer 11

To determine

(c)

Introduction:

When a company holds 50% or more of the common stock of another company then both the companies are treated as a single entity. In such a case, consolidated statements are prepared.

To prepare:

Balance Sheet of D Corporation. (post acquisition).

Answer 12

To determine

(d)

Introduction:

When a company holds 50% or more of the common stock of another company then both the companies are treated as a single entity. In such a case, consolidated statements are prepared.

To calculate:

The goodwill and amount adjusted in the book value.

Answer 13

To determine

(d)

Introduction:

When a company holds 50% or more of the common stock of another company then both the companies are treated as a single entity. In such a case, consolidated statements are prepared.

To calculate:

The goodwill and amount adjusted in the book value.

Answer 14

To determine

(e)

Introduction:

When a company holds 50% or more of the common stock of another company then both the companies are treated as a single entity. In such a case, consolidated statements are prepared.

To prepare:

Consolidated Balance Sheet.

Answer 15

To determine

(e)

Introduction:

When a company holds 50% or more of the common stock of another company then both the companies are treated as a single entity. In such a case, consolidated statements are prepared.

To prepare:

Consolidated Balance Sheet.

Answer 16

Expert Solution & Answer

Answer 17

Expert Solution & Answer

Answer 18

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Answer 19

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(a) Introduction: When a company holds 50% or more of the common stock of another company then both the companies are treated as a single entity. In such a case, consolidated statements are prepared. To prepare: Journal entry for business combination.

Solution Summary: The author explains that when a company holds 50% or more of the common stock of another company, consolidated statements are prepared.

Concept explainers

(a)

Introduction:

When a company holds 50% or more of the common stock of another company then both the companies are treated as a single entity. In such a case, consolidated statements are prepared.

To prepare:

Journal entry for business combination.

(b)

Introduction:

When a company holds 50% or more of the common stock of another company then both the companies are treated as a single entity. In such a case, consolidated statements are prepared.

To prepare:

Balance Sheet of A Inc. (post acquisition).

(c)

Introduction:

When a company holds 50% or more of the common stock of another company then both the companies are treated as a single entity. In such a case, consolidated statements are prepared.

To prepare:

Balance Sheet of D Corporation. (post acquisition).

(d)

Introduction:

When a company holds 50% or more of the common stock of another company then both the companies are treated as a single entity. In such a case, consolidated statements are prepared.

To calculate:

The goodwill and amount adjusted in the book value.

(e)

Introduction:

When a company holds 50% or more of the common stock of another company then both the companies are treated as a single entity. In such a case, consolidated statements are prepared.

To prepare:

Consolidated Balance Sheet.

Want to see the full answer?

Chapter A2 Solutions

(a) Introduction: When a company holds 50% or more of the common stock of another company then both the companies are treated as a single entity. In such a case, consolidated statements are prepared. To prepare: Journal entry for business combination.

Solution Summary: The author explains that when a company holds 50% or more of the common stock of another company, consolidated statements are prepared.

Concept explainers

(a) Introduction: When a company holds 50% or more of the common stock of another company then both the companies are treated as a single entity. In such a case, consolidated statements are prepared. To prepare: Journal entry for business combination.

(b) Introduction: When a company holds 50% or more of the common stock of another company then both the companies are treated as a single entity. In such a case, consolidated statements are prepared. To prepare: Balance Sheet of A Inc. (post acquisition).

(c) Introduction: When a company holds 50% or more of the common stock of another company then both the companies are treated as a single entity. In such a case, consolidated statements are prepared. To prepare: Balance Sheet of D Corporation. (post acquisition).

(d) Introduction: When a company holds 50% or more of the common stock of another company then both the companies are treated as a single entity. In such a case, consolidated statements are prepared. To calculate: The goodwill and amount adjusted in the book value.

(e) Introduction: When a company holds 50% or more of the common stock of another company then both the companies are treated as a single entity. In such a case, consolidated statements are prepared. To prepare: Consolidated Balance Sheet.

Want to see the full answer?

Chapter A2 Solutions

(a)

Introduction:

When a company holds 50% or more of the common stock of another company then both the companies are treated as a single entity. In such a case, consolidated statements are prepared.

To prepare:

Journal entry for business combination.

(b)

Introduction:

When a company holds 50% or more of the common stock of another company then both the companies are treated as a single entity. In such a case, consolidated statements are prepared.

To prepare:

Balance Sheet of A Inc. (post acquisition).

(c)

Introduction:

When a company holds 50% or more of the common stock of another company then both the companies are treated as a single entity. In such a case, consolidated statements are prepared.

To prepare:

Balance Sheet of D Corporation. (post acquisition).

(d)

Introduction:

When a company holds 50% or more of the common stock of another company then both the companies are treated as a single entity. In such a case, consolidated statements are prepared.

To calculate:

The goodwill and amount adjusted in the book value.

(e)

Introduction:

When a company holds 50% or more of the common stock of another company then both the companies are treated as a single entity. In such a case, consolidated statements are prepared.

To prepare:

Consolidated Balance Sheet.