Question
In: Accounting
The financial balances for the Atwood Company and the Franz Company as of December 31, 2013,...
The financial balances for the Atwood Company and the Franz
Company as of December 31, 2013, are presented below. Also included
are the fair values for Franz Company's net assets.
Note: Parenthesis indicate a credit balance
Assume an acquisition business combination took place at December
31, 2013. Atwood issued 50 shares of its common stock with a fair
value of $35 per share for all of the outstanding common shares of
Franz. Stock issuance costs of $15 (in thousands) and direct costs
of $10 (in thousands) were paid.
Compute consolidated buildings (net) at the date of the
acquisition.
$1,800.
$650.
$2,450.
$2,340.
$1,690.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
The financial balances for the Atwood Company and the Franz Company as of December 31, 20XX,...
The financial balances for the Atwood Company and the Franz
Company as of December 31, 20XX, are presented below. Also included
are the fair values for Franz Company's net assets.
Atwood
Franz Co.
Franz Co.
(all numbers are in thousands)
Book Value
Book Value
Fair Value
12/31/20XX
12/31/20XX
12/31/20XX
Cash
$870
$240
$240
Receivables
660
600
600
Inventory
1,230
420
580
Land
1,800
260
250
Buildings (net)
1,800
540
650
Equipment (net)
660
380
400
Accounts payable
(570)
(240)
(240)...
The financial statement amounts for the Atwood Company and the Franz Company as of December 31,...
The financial statement amounts for the Atwood Company and the
Franz Company as of December 31, 2021, are presented below. Also
included are the fair values for Franz Company's net assets (all
numbers are in thousands).
Atwood
Franz Co.
Franz Co.
Book Value
Book Value
Fair Value
12/31/2021
12/31/2021
12/31/2021
Cash
$
870
$
240
$
240
Receivables
660
600
600
Inventory
1,230
420
580
Land
1,800
260
250
Buildings (net)
1,800
540
650
Equipment (net)
660
380
400
Accounts...
Yahoo! reported the following in its 2013 financial statements (in thousands): December 31, 2013 December 31,...
Yahoo! reported the following in its
2013 financial statements (in thousands):
December 31, 2013
December 31, 2012
December 31, 2011
Revenues
$4,680,380
$4,986,566
$4,984,199
Product development expenditure
$1,008,487
$885,824
$919,368
Assume that Yahoo! expensed 90% of its product development
expenditure.
Required:
List three types of costs that Yahoo likely includes in the
product development line item on the income statement.
Used FSET to record the product development expenditure of
2013.
What type of product development expenditure might Yahoo!
capitalize?
Unadjusted account balances at December 31, 2013, for Rapisarda Company are as follows: Particulars Debit Credit...
Unadjusted account balances at December 31, 2013, for Rapisarda
Company are as follows:
Particulars
Debit
Credit
Cash
2,000
Accounts receivable
33,000
Prepaid rent
26,000
Equipment
211,000
Accumulated depreciation (Equipment)
75,000
Other assets
24,000
Accounts payable
12,000
Note payable (due to 10 years)
40,000
Common stock
100,000
Retained earnings, 12/31/2012
11,000
Service revenue
243,000
Rent expense
84,000
Wages expense
97,000
Interest expense
4,000
Totals
481,000
481,000
The following data are not yet recorded:
a. Depreciation on the equipment is $18,350.
b....
Below is a list of account balances for Currie Hospital as of December 31, 2013. Prepare...
Below is a list of account balances for Currie Hospital as of
December 31, 2013. Prepare a balance sheet as of December 31, 2013,
in proper form. (Hint: You will need to compute the net assets
account. Assume that all net assets at the beginning of the year
are unrestricted.)
You may use either a Word document or an Excel spreadsheet to
construct the balance sheet.
Account
Balance
Gross plant & equipment
$6,000,000
Accounts payable
130,000
Inventories
100,000
Other current...
Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also...
Following are preacquisition financial balances for Padre
Company and Sol Company as of December 31. Also included are fair
values for Sol Company accounts.
Padre
Company
Sol Company
Book Values
Book Values
Fair Values
12/31
12/31
12/31
Cash
$
262,500
46,850
$
46,850
Receivables
251,250
358,000
358,000
Inventory
432,500
305,000
356,400
Land
762,500
163,000
141,500
Building and
equipment (net)
637,500
320,000
387,100
Franchise
agreements
232,000
268,000
303,000
Accounts
payable
(314,000
)
(183,000
)
(183,000
)
Accrued
expenses
(121,000
)
(33,250...
Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also...
Following are preacquisition financial balances for Padre
Company and Sol Company as of December 31. Also included are fair
values for Sol Company accounts.
Padre
Company
Sol Company
Book Values
Book Values
Fair Values
12/31
12/31
12/31
Cash
$
306,750
62,450
$
62,450
Receivables
257,250
376,000
376,000
Inventory
590,000
291,000
344,200
Land
805,000
140,000
119,800
Building and equipment (net)
697,500
335,000
402,500
Franchise agreements
230,000
250,000
285,200
Accounts payable
(364,000
)
(205,000
)
(205,000
)
Accrued expenses
(156,000
)
(39,750...
Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also...
Following are preacquisition financial balances for Padre
Company and Sol Company as of December 31. Also included are fair
values for Sol Company accounts.
Padre
Company
Sol Company
Book Values
Book Values
Fair Values
12/31
12/31
12/31
Cash
$
408,250
82,650
$
82,650
Receivables
225,750
330,000
330,000
Inventory
632,500
219,000
275,300
Land
792,500
173,000
149,100
Building and equipment (net)
627,500
334,000
399,800
Franchise agreements
225,000
255,000
285,000
Accounts payable
(303,000
)
(161,000
)
(161,000
)
Accrued expenses
(141,000
)
(49,750...
Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also...
Following are preacquisition financial balances for Padre
Company and Sol Company as of December 31. Also included are fair
values for Sol Company accounts.
Padre
Company
Sol Company
Book Values
Book Values
Fair Values
12/31
12/31
12/31
Cash
$
262,500
46,850
$
46,850
Receivables
251,250
358,000
358,000
Inventory
432,500
305,000
356,400
Land
762,500
163,000
141,500
Building and equipment (net)
637,500
320,000
387,100
Franchise agreements
232,000
268,000
303,000
Accounts payable
(314,000
)
(183,000
)
(183,000
)
Accrued expenses
(121,000
)
(33,250...
Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also...
Following are preacquisition financial balances for Padre
Company and Sol Company as of December 31. Also included are fair
values for Sol Company accounts.
Padre
Company
Sol Company
Book Values
Book Values
Fair Values
12/31
12/31
12/31
Cash
$
400,000
$
120,000
$
120,000
Receivables
220,000
300,000
300,000
Inventory
410,000
210,000
260,000
Land
600,000
130,000
110,000
Building and equipment (net)
600,000
270,000
330,000
Franchise agreements
220,000
190,000
220,000
Accounts payable
(300,000)
(120,000)
(120,000)
Accrued expenses
(90,000)
(30,000)
(30,000)
Longterm liabilities...
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