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Haynes, Inc., obtained 100 percent of Turner Company's common stock on January 1, 2014, by...

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Accounting

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Haynes, Inc., obtained 100 percent of Turner Company's common stock on January 1, 2014, by issuing 11,100 shares of $10 par value common stock. Haynes's shares had a $15 per share fair value. On that date, Turner reported a net book value of $128,150. However, its equipment (with a five-year remaining life) was undervalued by $5,950 in the company's accounting records. Also, Turner had developed a customer list with an assessed value of $32,400, although no value had been recorded on Turner's books. The customer list had an estimated remaining useful life of 10 years. The following figures come from the individual accounting records of these two companies as of December 31, 2014: Haynes Turner $(327,000) 139,000 Revenues Expenses Investment income Dividends declared $(713,000) 535,000 Not given 90,000 90,000

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