Question

In: Accounting

Beta Company acquired 100 percent of the voting common shares of Standard Video Corporation, its bitter...

Beta Company acquired 100 percent of the voting common shares of Standard Video Corporation, its bitter rival, by issuing bonds with a par value and fair value of $150,000. Immediately prior to the acquisition, Beta reported total assets of $500,000, liabilities of $280,000, and stockholders' equity of $220,000. At that date, Standard Video reported total assets of $400,000, liabilities of $250,000, and stockholders' equity of $150,000. Included in Standard's liabilities was an account payable to Beta in the amount of $20,000, which Beta included in its accounts receivable.

12.

Required information

Based on the preceding information, what amount of total assets did Beta report in its balance sheet immediately after the acquisition?

$500,000

$650,000

$750,000

$900,000

13.

Required information

Based on the preceding information, what amount of total assets was reported in the consolidated balance sheet immediately after acquisition?

$650,000

$880,000

$920,000

$750,000

14.

Required information

Based on the preceding information, what amount of total liabilities was reported in the consolidated balance sheet immediately after acquisition?

$500,000

$530,000

$280,000

$660,000

15.

Required information

Based on the preceding information, what amount of stockholders' equity was reported in the consolidated balance sheet immediately after acquisition?

$220,000

$150,000

$370,000

$350,000

Solutions

Expert Solution

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

On December 31, 2009, Add-On Company acquired 100 percent of the common shares of Venus Corporation...
On December 31, 2009, Add-On Company acquired 100 percent of the common shares of Venus Corporation for $ 300,000. Information about the Venus balance just before the acquisition is given here: Cash and Accounts Receivable...............$ 35,000 Inventory .................................................$75,000 Land ........................................................$100,000, Buildings and Equipment (net) ................$220,000 Total Assets .........................................$ 430,000 Accounts Payable ....................................$ 65,000 Bonds Payable ................................... $150,000 Common Stock .........................................$100,000 Retained earnings ...................................$115,000 Total Liabilities and Stockholders'Equity$ 430,000 At the date of the business combination, the net assets and liabilities...
On January 1, 2017, Stream Company acquired 27 percent of the outstanding voting shares of Q-Video,...
On January 1, 2017, Stream Company acquired 27 percent of the outstanding voting shares of Q-Video, Inc., for $716,000. Q-Video manufactures specialty cables for computer monitors. On that date, Q-Video reported assets and liabilities with book values of $1.6 million and $800,000, respectively. A customer list compiled by Q-Video had an appraised value of $306,000, although it was not recorded on its books. The expected remaining life of the customer list was five years with a straight-line amortization deemed appropriate....
On January 1, 2017, Stream Company acquired 27 percent of the outstanding voting shares of Q-Video,...
On January 1, 2017, Stream Company acquired 27 percent of the outstanding voting shares of Q-Video, Inc., for $716,000. Q-Video manufactures specialty cables for computer monitors. On that date, Q-Video reported assets and liabilities with book values of $1.6 million and $800,000, respectively. A customer list compiled by Q-Video had an appraised value of $306,000, although it was not recorded on its books. The expected remaining life of the customer list was 5 years with a straight-line amortization deemed appropriate....
On January 1, 2020, Stream Company acquired 30 percent of the outstanding voting shares of Q-Video,...
On January 1, 2020, Stream Company acquired 30 percent of the outstanding voting shares of Q-Video, Inc., for $758,000. Q-Video manufactures specialty cables for computer monitors. On that date, Q-Video reported assets and liabilities with book values of $1.8 million and $750,000, respectively. A customer list compiled by Q-Video had an appraised value of $268,000, although it was not recorded on its books. The expected remaining life of the customer list was eight years with straight-line amortization deemed appropriate. Any...
Pop Corporation acquired 70 percent of Soda Company's voting common shares on January 1, 20X2, for...
Pop Corporation acquired 70 percent of Soda Company's voting common shares on January 1, 20X2, for $118,300. At that date, the noncontrolling interest had a fair value of $50,700 and Soda reported $70,000 of common stock outstanding and retained earnings of $31,000. The differential is assigned to buildings and equipment, which had a fair value $24,000 higher than book value and a remaining 10-year life, and to patents, which had a fair value $44,000 higher than book value and a...
Pop Corporation acquired 70 percent of Soda Company's voting common shares on January 1, 20X2, for...
Pop Corporation acquired 70 percent of Soda Company's voting common shares on January 1, 20X2, for $119,000. At that date, the noncontrolling interest had a fair value of $51,000 and Soda reported $70,000 of common stock outstanding and retained earnings of $33,000. The differential is assigned to buildings and equipment, which had a fair value $29,000 higher than book value and a remaining 10-year life, and to patents, which had a fair value $38,000 higher than book value and a...
Pop Corporation acquired 70 percent of Soda Company's voting common shares on January 1, 20X2, for...
Pop Corporation acquired 70 percent of Soda Company's voting common shares on January 1, 20X2, for $118,300. At that date, the noncontrolling interest had a fair value of $50,700 and Soda reported $70,000 of common stock outstanding and retained earnings of $31,000. The differential is assigned to buildings and equipment, which had a fair value $24,000 higher than book value and a remaining 10-year life, and to patents, which had a fair value $44,000 higher than book value and a...
Plexis Corporation holds 70 percent of Solar Company's voting common shares, acquired at book value, but...
Plexis Corporation holds 70 percent of Solar Company's voting common shares, acquired at book value, but none of its preferred shares. At the date of acquisition, the fair value of the noncontrolling interest was equal to 30 percent of the book value of Solar Company. Summary balance sheets for the companies on December 31, 20X5, are as follows: Plexis Corp. Solar Company Cash and Receivables $ 70,000 $ 55,000 Inventory 60,000 35,000 Buildings and Equipment (net) 180,000 160,000 Investment in...
Francisco Inc. acquired 100 percent of the voting shares of Beltran Company on January 1, 2017....
Francisco Inc. acquired 100 percent of the voting shares of Beltran Company on January 1, 2017. In exchange, Francisco paid $795,250 in cash and issued 108,000 shares of its own $1 par value common stock. On this date, Francisco’s stock had a fair value of $12 per share. The combination is a statutory merger with Beltran subsequently dissolved as a legal corporation. Beltran’s assets and liabilities are assigned to a new reporting unit. The following reports the fair values for...
Francisco Inc. acquired 100 percent of the voting shares of Beltran Company on January 1, 2017....
Francisco Inc. acquired 100 percent of the voting shares of Beltran Company on January 1, 2017. In exchange, Francisco paid $657,500 in cash and issued 110,000 shares of its own $1 par value common stock. On this date, Francisco’s stock had a fair value of $12 per share. The combination is a statutory merger with Beltran subsequently dissolved as a legal corporation. Beltran’s assets and liabilities are assigned to a new reporting unit. The following reports the fair values for...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT