Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. palm corporation and staple company have announced

Palm Corporation and Staple Company have announced terms of an exchange agreement...

60.1K

Verified Solution

Question

Accounting

image

image

Palm Corporation and Staple Company have announced terms of an exchange agreement under which Palm will issue 8,000 shares of its $10 par value common stock to acquire all of Staple Company's assets. Palm shares currently are trading at $50, and Staple $5 par value shares are trading at $18 each. Historical cost and fair value balance sheet data on January 1, 20X2, are as follows: Palm Corporation Book Value Fair Value Staple Company Book Value Fair Value Balance Sheet Item Assets Cash & Receivables Land Buildings & Equipment (net) Total Assets Equities Common Stock Additional Paid-In Capital Retained Earnings Total Equities $150,000 100,000 300,000 $550,000 $150,000 170,000 400,000 $720,000 $ 40,000 50,000 160,000 $250,000 $ 40,000 85,000 230,000 $355,000 $200,000 20,000 330,000 $550,000 $100,000 10,000 140,000 $250,000 Required: What amount will be reported immediately following the business combination for each of the following items in the combined company's balance sheet? Amounts a. Common Stock b. Cash and Receivables C. Land d. Buildings and Equipment (net) e. Goodwill f. Additional paid-In Capital 9. Retained Earnings

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

Physics
1.2K views

Explain the 3 Emissive flat-panel devices: electroluminescent, plasma display and field-emission display with detail to the...

Electrical Engineering
1.2K views

NMOS and PMOS Explain the difference between a NMOS and PMOS and plot their characteristics curves LTspice...

Biology
1.2K views

Which shortcut key is used for Spelling Gramma check option in MS Word 2013

Geometry
1.2K views

Barney has a balance of 780 on a credit card with an APR of 31...

Calculus
1.2K views

Evaluate the integral r 2 S474 cot5 p csc p dop

Algebra
1.2K views

Let p 1 x2x p2 4 4x 8x p3 7 Find a basis for the...

Algebra
1.2K views

6 A national retailer attempts to determine a demand curve for a new product by...

Accounting
1.2K views

Donnas Beauty Salon had the following transactions for July: July 9: Purchased 625 units of...

Accounting
1.2K views

Platinum Web Services designs and maintains websites for small business entrepreneurs. Competition has...

Accounting
1.2K views

methods for allocating service department costs to other departments...

Finance
1.2K views

a depreciation method where higherdepreciayion is charged when there is higher activity and less is...

Accounting
1.2K views

Candle Co. performs an inventory court at year-end. The company records a ending balance of...