Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. exercise 2-6 pritano company acquired all the net

Exercise 2-6 Pritano Company acquired all the net assets of Succo Company on December 31,...

50.1K

Verified Solution

Question

Accounting

image

image

Exercise 2-6 Pritano Company acquired all the net assets of Succo Company on December 31, 2013, for $2,372,120 cash. The balance sheet of Succo Company immediately prior to the acquisition showed: Current assets Plant and equipment Total Book value Fair value 1,016,860 $1,016,860 1,155,510 1,384,170 $2,172,370 $2,401,030 Liabilities $169,930 $231,530 524,810 603,000 874,630 $2,172,370 Common stock Other contributed capital Retained earnings Total As part of the negotiations, Pritano Company agreed to issue 9,360 additional shares of its $10 par value common stock to the stockholders of Succo if the average postcombination earnings over the next three years equaled or exceeded $2,598,000. The fair value of the contingent consideration on the date of acquisition was estimated to be $199,800. The contingent consideration (earnout) was classified as equity rather than as a liability

Answer & Explanation Solved by verified expert
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!
Become a Member

Other questions asked by students

Basic Math
1.2K views

Here are the scores of 13 students on a history test 59 60 61 61...

Basic Math
1.2K views

sampling, variables, hypothesis testing, z scores, and standard deviation

Biology
1.2K views

In hormone research, if you hypothesized that a signal is produced in the root and influences...

Physics
1.2K views

A Standard tuning fork contains frequency n another TF n have 20 more compared to...

Algebra
1.2K views

The quadrilateral shown is a rhombus What is m 24 A 28 B 32 C...

Algebra
1.2K views

The function f r has table 3 3 x Y The function 1 3 1...

Accounting
1.2K views

Mike's Bikes begins business in 2022. In its first year of business, Mike sells 500...

Accounting
1.2K views

Pharoah Horticulture provides and maintains live plants in office buildings. The companys 892 customers are...

Accounting
1.2K views

For a company with a defined pension plan, the fair value of plan assets at...

Accounting
1.2K views

Guava is a privately-owned company. On September 3, Guava exchanged 2,000 shares of its private...

Accounting
1.2K views

ALLESSANDRO SCARLATTI COMPANY Balance Sheet (Partial) December 31, 2017 Current...

Finance
1.2K views

Question 1 (1 point) A speculator sells a European call option on a share for...