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

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 $1,016,850 1,155,510 1,384,170 $2,172,370 $2,401,030 $169,930 $231,530 Liabilities Common stock Other contributed capital 524,810 603,000 874,630 $2,172,370 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 or 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

Biology
1.2K views

3. Describe the difference between a homologous chromosome and a sister chromatid

Accounting
1.2K views

Sunspot Beverages, Ltd., of Fiji uses the weighted-average method in its process costing system. It makes...

Biology
1.2K views

In the original Pulse Chase experiment of Palade and colleagues what was does the or...

Physics
1.2K views

It is found that when waves from two identical coherent sources superpose at a certain...

Physics
1.2K views

Figure shows an irregular shaped with AB moving with velocity v as shown Find the...

Basic Math
1.2K views

A solid is formed by rotating about the x axis the region in the first...

Statistics
1.2K views

Normal Probability Distribution Homew Points 0 of 1 Assume that the salaries of elementary school...

Calculus
1.2K views

t r 3 2 4 6 5 4 X 3 a 1 N 3 4...

Algebra
1.2K views

Use log 20 335 log 30 621 and log 50 794 to approximate the value...

Accounting
1.2K views

Lenny Florita, an unmarried employee, works 50 hours in the week...

Accounting
1.2K views

Kubin company's relevant range is 18000 to 22000 units. When it produces and sells 20,000...

Finance
1.2K views

Can you please solve this ? it's urgent Calculate the portfolio's standard deviation....