2) Lebron Co. acquired the entire outstanding shares of common stock of Cavaliers Co. On the acquisition date the total fair value of net identifiable assets acquired (i.e., far value of identifiable assets acquired and liabilities assumed) was greater than the consideration transferred for the shares.

Research and cite a specific paragraph in the Accounting Standard Codification that can help the company to determine how this difference should be recognized in the consolidated financial statements. Unless specifically requested, your response should not cite implementation guidance and illustrations.

FASB ASC                              -                   -                    -

In January 2020, A Co. announced plans to acquire T Co. After a careful valuation process, the directors of A Co. have projected that the present value of the takeover synergies will be US$1.52 million.

In addition, the following information is available.

• A Co. and T Co. price per share are US$25 and US$30, respectively.
• T Co. has 1.5 million shares outstanding.

Use this information to answer the following questions related to a A Co.'s financially feasible offer. Use 2 decimal places to express your answer.

1. What is the maximum tender offer, A Co. should be willing to make for T Co.?  Answer: maximum tender offer will be US$ ______million.
2. What is the maximum premium (as a fraction of MC_T), A Co. should be willing to offer for T Co.?  Answer: maximum premium (as a fraction of MC_T) will be _____%.
3. What is the maximum cash offer per T Co share, A Co. should be willing to make for T Co.?  Answer: maximum cash offer per T Co shares will be US$ ______.
4. What is the maximum exchange ratio (N*/N_T), A Co. could offer in a stock swap to T Co.?  Answer: maximum exchange ratio will be ______.

Pharoah Company finances some of its current operations by assigning accounts receivable to a finance company. On July 1, 2020, it assigned, under guarantee, specific accounts amounting to $345,000. The finance company advanced to Pharoah 80% of the accounts assigned (20% of the total to be withheld until the finance company has made its full recovery), less a finance charge of 0.50% of the total accounts assigned.

On July 31, Pharoah Company received a statement that the finance company had collected $184,000 of these accounts and had made an additional charge of 0.50% of the total accounts outstanding as of July 31. This charge is to be deducted at the time of the first remittance due Pharoah Company from the finance company. (Hint: Make entries at this time.) On August 31, 2020, Pharoah Company received a second statement from the finance company, together with a check for the amount due. The statement indicated that the finance company had collected an additional $115,000 and had made a further charge of 0.50% of the balance outstanding as of August 31.

Make all entries on the books of Pharoah Company that are involved in the transactions above. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

As a long-term investment, Painters' Equipment Company purchased 20% of AMC Supplies Inc.'s 590,000 shares for $670,000 at the beginning of the fiscal year of both companies. On the purchase date, the fair value and book value of AMC’s net assets were equal. During the year, AMC earned net income of $350,000 and distributed cash dividends of 20 cents per share. At year-end, the fair value of the shares is $714,000.

1. Assume no significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

2. Assume significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

On February 1, 2018 Cromley Motor Products issued 10% bonds, dated February 1, with a face amount of $90 million. The bonds mature on January 31, 2022 (4 years). The market yield for bonds of similar risk and maturity was 12%. Interest is paid semiannually on July 31 and January 31. Barnwell Industries acquired $90,000 of the bonds as a long-term investment. The fiscal years of both firms end December 31.use FVof 1$, PV of 1$ etc.)

Required: 1. Determine the price of the bonds issued on February 1, 2018

PRICE OF THE BOND ……

2a. prepare amortization schedules that indicate Cromley’s effective interest expense for each period during the term to maturity.

Payment Number Cash Payment Effective Interest Increase in Balance Outstanding Balance

1

2

3

4

5

6

7

8

Totals

2b. Prepare amortization schedules that indicate Barnwell’s effective interest revenue for each interest period during the term to maturity. (Enter your answers in whole dollars.) Payment Number Cash Payment Effective Interest Increase in Balance Outstanding Balance

1

2

3

4

5

6

7

8

Totals

3. Prepare the journal entries to record the issuance of the bonds by Cromley and Barnwell’s investment on February 1, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) a. Record the issuance of the bonds by Cromley. On February 1, 2018 b. Record the Bond investment by Barnwell. On February 1, 2018 4. Prepare the journal entries by both firms to record all subsequent events related to the bonds through January 31, 2020. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.)

a. Record the payment of interest for Cromley Company., on July 31, 2018

b. Record the accrued interest for Cromley Company. On December 31, 2018

c. Record the payment of interest for Cromley Company, on January 31, 2019

d. Record the payment of interest for Cromley Company. On July 31, 2019

e. Record the accrued interest for Cromley Company. On December 31, 2019

f. Record the payment of interest for Cromley Company. On January 31, 2020

5. Prepare the journal entries by both firms to record all subsequent events related to the bonds through January 31, 2020. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.)

a. Record the payment of interest for Barnwell Company., on July 31, 2018

b. Record the accrued interest for Barnwell Company. . On December 31, 2018

c. Record the receipt of interest for Barnwell Company. on January 31, 2019

d. Record the receipt of interest for Barnwell Company. On July 31, 2019

e. Record the accrued interest for Barnwell Company. On December 31, 2019

f. Record the receipt of interest for Barnwell Company. On January 31, 2020

Who is a stakeholder and why are they, and their voices, important?

As a stakeholder in Post University, next week in all your courses you are going to be asked to complete your student survey. Big deal… Why should your instructors care about what you have to say? Why should Post care about what you have to say? What difference can you, or any stakeholder make by conveying your thoughts to the company you’re a stakeholder in? Is there a better way to reach for a result or action from the company?

If you own the company, why should you listen to feedback regarding improvement for the company you have poured you heart, soul, and monies into?

On May 3, 2020, Pharoah Company consigned 90 freezers, costing $490 each, to Remmers Company. The cost of shipping the freezers amounted to $850 and was paid by Pharoah Company. On December 30, 2020, a report was received from the consignee, indicating that 45 freezers had been sold for $730 each. Remittance was made by the consignee for the amount due after deducting a commission of 6%, advertising of $200, and total installation costs of $310 on the freezers sold.

(Round answers to 0 decimal places, e.g. 5,275.)

(a) Compute the inventory value of the units unsold in the hands of the consignee.

(b) Compute the profit for the consignor for the units sold.

(c) Compute the amount of cash that will be remitted by the consignee.

On January 1, 2019, The company you work for sold 6% bonds having a maturity value of $1,000,000 and a 3% yield (market rate). The bonds are dated January 1, 2019, and mature January 1, 2024, with interest payable June 30 and December 31 of each year. Your company allocates interest and unamortized discount or premium on the effective-interest basis.

You are trying to explain the cash flow, interest and liability impacts of the bond issue to your CEO on what this bond issue means to the business and financial statements.

As an intern in the Accounting department, it is your responsibility to explain this bond issue to the CEO. Present an amortization schedule that details out the cash flows, interest expense and carrying amount of the bond issue throughout its life.

Prepare an interest amortization schedule in Excel (in good format as you are going to share this with the CEO) for the bond issue detailed above. The amortization schedule should cover the full 5-year bond issue and show the cash impact, interest expense and carrying value of the bond for each period.

For your CEO, you are required to

1. Work out an excel worksheet showing the value of the bond at the date of issuance using the PV function in Excel (make sure to use formulas).
2. Amortization table, in good “deliverable” form for the full life of the bond. Use formulas to calculate each of the values in the amortization table (do not calculate using present value factors and hard-code into Excel)
3. Journal entries your company would record at 1) the date of issuance 2) the first interest payment date and 3) the maturity date.
4. Calculation of the total cost (expense) of issuing the bond and the total cash impact to your company over the life of the bond (ex: net ALL of the cash flows over the life of the bond).