Business, 30.07.2020 03:01 travisvb

The following financial statement information is for an investor company and an investee company on January 1, 2013. On January 1, 2013, the investor company's common stock had a traded market value of $87.5 per share, and the investee company's common stock had a traded market value of $77.5 per share. Investor Investee Investor Investee
Receivables & inventories $150,000 $75,000 $135,000 $67,500
Land 300,000 150,000 450,000 225,000
Property & equipment 337,500 150,000 375,000 195,000
Trademarks & patents — — 225,000 120,000
Total assets $787,500 $375,000 $1,185,000 $607,500
Liabilities $225,000 $120,000 $270,000 $142,500
Common stock ($1 par) 30,000 15,000
Additional paid-in capital 420,000 225,000
Retained earnings 112,500 15,000
Total liabilities & equity $787,500 $375,000
Net assets $562,500 $255,000 $915,000 $465,000

Required:
a. Assume that the investor company issued 14,250 new shares of the investor company’s common stock in exchange for all of the individually identifiable assets and liabilities of the investee company. The financial information presented, above, was prepared immediately before this transaction. Provide the Investor Company’s balances (i. e., on the investor’s books, before consolidation) for the following accounts immediately following the acquisition of the investee’s net assets:

a. Receivables & Inventories
b. Land
c. Property & Equipment
d. Trademarks & Patents
e. Investment in Investee
f. Goodwill
g. Total Assets
h. Liabilities
i. Common Stock ($1 par)
j. Additional Paid-In Capital
k. Retained Earnings
l. Total Liabilities and Equity

b. Assume that the investor company issued 14,250 new shares of the investor company’s common stock in exchange for all of the investee company’s common stock. The financial information presented, above, was prepared immediately before this transaction. Provide the Investor Company’s balances (i. e., on the investor’s books, before consolidation) for the following accounts immediately following the acquisition of the investee’s net assets:

a. Receivables & Inventories
b. Land
c. Property & Equipment
d. Trademarks & Patents
e. Investment in Investee
f. Goodwill
g. Total Assets
h. Liabilities
i. Common Stock ($1 par)
j. Additional Paid-In Capital
k. Retained Earnings
l. Total Liabilities and Equity

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 10:00

Employees at a library check out books to patrons. books have an isbn and a name. the library sometimes has multiple copies of the same book. books have one or more authors. a patron is an individual who has an active (non-expired) library card. for each library card, we store the person's first and last names and their address. for each employee, we store their employee id, current salary, first and last name and their address. we also store the employee id of their current manager. each time we check out a book to a patron we need to store the date of the transaction, the employee who checked out the book to the patron, and the library card of the patron. some employees have library cards. if an employee patron turns in a book late, the fine that they pay is a percentage of their salary. some employees are authors who have library cards—they are allowed to check out as many books as they like.

Answers: 1

Answer

Business, 22.06.2019 10:40

What would happen to the equilibrium price and quantity of lattés if the cost to produce steamed milk

Answers: 1

Answer

Business, 22.06.2019 19:00

1. regarding general guidelines for the preparation of successful soups, which of the following statements is true? a. thick soups made with starchy vegetables may thin during storage. b. soups should be seasoned throughout the cooking process. c. finish a cream soup well before serving it to moderate the flavor. d. consommés take quite a long time to cool.

Answers: 2

Answer

Business, 23.06.2019 03:00

Madeline quits her job, at which she was earning $20,000 per year. she then takes $50,000 out of savings, on which she was earning 10% interest, and uses it to buy supplies for her business. she also pays $10,000 in rent on the building and $15,000 in additional labor costs. in her first year of operations, madeline receives $150,000 in revenue from sales. instructions: round each answer to a whole number. madeline's accounting cost is

Answers: 1

Answer

You know the right answer?

The following financial statement information is for an investor company and an investee company on...

Questions