Business, 10.03.2020 06:01 2sally2

On December 31, Miller issues 50,000 shares of its $20 par value common stock for all of the out- standing shares of Richmond Company .As part of the acquisition agreement, Miller agrees to pay the former owners of Richmond $250,000 if certain profit projections are realized over the next three years. Miller calculates the acquisition- date fair value of this contingency at $100,000 In creating this combination, Miller pays $10,000 in stock issue costs and $20,000 in accounting and legal fees. . Required a. Miller's stock has a fair value of $32 per share. Using the acquisition method: 1. Prepare the necessary journal entries if Miller dissolves Richmond so it is no longer a separate legal entity 2. Assume instead that Richmond will retain separate legal incorporation and maintain its own accounting systems. Prepare a worksheet to consolidate the accounts of the two companies. b. If Miller's stock has a fair value of $26 per share. describe how the consolidated balances would dif- fer from the results in requirement (a).

Answers: 1

Show answers

Another question on Business

Business, 21.06.2019 22:30

Match the vocabulary word to the correct definition. 1. sexual harassment 2. terminate 3. recruitment 4. professional development 5. union a. any unwanted sexual attention, the suggestions that maintaining one’s job or professional advancement depends on sexual favors, or verbal and/or physical harassment of a sexual nature b. to fire from a job or end a professional relationship c. an organization of those in the same industry who join together to more effectively bargain with employers d. the process of attracting and hiring employees e. continuing education in a chosen field

Answers: 1

Answer

Business, 22.06.2019 06:30

If the findings and the results are not presented properly, the research completed was a waste of time and money. true false

Answers: 1

Answer

Business, 22.06.2019 14:20

For the year ended december 31, a company has revenues of $323,000 and expenses of $199,000. the company paid $52,400 in dividends during the year. the balance in the retained earnings account before closing is $87,000. which of the following entries would be used to close the dividends account?

Answers: 3

Answer

Business, 22.06.2019 19:10

Pam is a low-risk careful driver and fran is a high-risk aggressive driver. to reveal their driver types, an auto-insurance company a. refuses to insure high-risk drivers b. charges a higher premium to owners of newer cars than to owners of older cars c. offers policies that enable drivers to reveal their private information d. uses a pooling equilibrium e. requires drivers to categorize themselves as high-risk or low-risk on the application form

Answers: 3

Answer

You know the right answer?

On December 31, Miller issues 50,000 shares of its $20 par value common stock for all of the out- st...

Questions