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  3. foxx corporation acquired all of greenburg company

Foxx Corporation acquired all of Greenburg Companys outstanding stock on January 1, 2022, for $586,000...

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Accounting

Foxx Corporation acquired all of Greenburg Companys outstanding stock on January 1, 2022, for $586,000 cash. Greenburgs accounting records showed net assets on that date of $440,000, although equipment with a 10-year remaining life was undervalued on the records by $56,500. Greenburg reports net income in 2022 of $105,000 and $137,500 in 2023. The subsidiary declared dividends of $20,000 in each of these two years. Account balances for the year ending December 31, 2024, follow. Credit balances are indicated by parentheses. Items Foxx Greenburg Revenues $ (1,164,000) $ (620,000) Cost of goods sold 145,500 155,000 Depreciation expense 358,000 440,000 Investment income (20,000) 0 Net income $ (680,500) $ (25,000) Retained earnings, 1/1/24 $ (1,160,000) $ (

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