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Business, 25.01.2020 04:31 Teddybearnerd

On january 1, 20x2, end corporation acquired all of cork corporation's assets and liabilities by issuing shares of its common stock. partial balance sheet data for the companies prior to the business combination and immediately following the combination are as follows:

end corp. cork corp.
book value book value combined entity
assets
cash $ 56,000 $ 26,000 $ 82,000
accounts receivable 76,000 46,000 120,000
inventory 66,000 51,000 128,000
buildings & equipment (net) 316,000 126,000 462,000
goodwill ?

total assets $ 514,000 $ 249,000 $ ?

liabilities & equities
accounts payable $ 48,000 $ 30,000 $ 78,000
bonds payable 166,000 86,000 252,000
bond premium 5,000 5,000
common stock, $5 par 116,000 56,000 143,000
additional paid-in capital 81,000 44,000 356,400
retained earnings 98,000 33,000 ?

total liabilities & equities $ 514,000 $ 249,000 $ ?

required:
a. what number of shares did end issue to acquire cork's assets and liabilities?

b. what was the total market value of the shares issued by end?

c.
what was the fair value of the inventory held by cork at the date of combination?

d.
what was the fair value of the identifiable net assets held by cork at the date of combination?

e.
what amount of goodwill, if any, will be reported by the combined entity immediately following the combination?

f.
what balance in retained earnings will the combined entity report immediately following the combination?

g.
if the depreciable assets held by cork had an average remaining life of 10 years at the date of acquisition, what amount of depreciation expense will be reported on those assets in 20x2?

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