ASAP!!!! thank you Assume that Holmes issued 40,000 shares of common...
80.2K
Verified Solution
Link Copied!
Question
Accounting
ASAP!!!! thank you
Assume that Holmes issued 40,000 shares of common stock with a $5 par value and a $25 fair value for all of the outstanding stock of Lynch. In addition, Holmes agreed to pay the shareholders of Lynch another $80,000 if Lynch's earnings exceed $50,000 next year. The estimated probability of this payment is 80% and we assume a present value factor of 0.95 for one year. Holmes also paid $8,000 legal fees and $3,000 stock issuance fees for this acquisition. Prepare the journal entries Holmes records on the acquisition date December 31, 2020
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.