Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on july 1, 2009, ute corporation paid $640,000 for

On July 1, 2009, Ute Corporation paid $640,000 for 80% of Cougar Company's outstanding common...

80.2K

Verified Solution

Question

Accounting

image

On July 1, 2009, Ute Corporation paid $640,000 for 80% of Cougar Company's outstanding common stock. On that date, the costs and fair values of Cougar's recorded assets and liabilities were as follows: Cost Fair Value Cash and Receivables 50,000 50,000 Inventory 230,000 300,000 Buildings and equipment (net) 200,000 350,000 Liabilities (80,000) _(120,000) Net assets 400,000 580,000 Give the information above, what is the po ion of the purchase ice that will be allocated to the differential? $220,000 $400,000 $420,000 $240,000

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