Parent Inc. and Sub Inc. had the following balance sheets on July 31, 2019: ...
60.1K
Verified Solution
Question
Accounting
Parent Inc. and Sub Inc. had the following balance sheets on July 31, 2019:
Parent Inc | Sub Inc | Sub Inc | |
(carrying value) | (carrying value) | (fair value) | |
Cash | $180,000 | $36,000 | $36,000 |
Accounts Receivable | $100,000 | $40,000 | $40,000 |
Inventory | $ 60,000 | $24,000 | $27,000 |
Plant and Equipment (net) | $200,000 | $80,000 | $93,000 |
Goodwill | $ - | $ 8,000 | |
Trademark | $ - | $12,000 | $15,000 |
Total Assets | $540,000 | $200,000 | |
Current Liabilities | $ 80,000 | $50,000 | $50,000 |
Bonds Payable | $320,000 | $20,000 | $24,000 |
Common Shares | $ 90,000 | $80,000 | |
Retained Earnings | $ 50,000 | $50,000 | |
Total Liabilities and Equity | $540,000 | $200,000 |
Assuming that Parent Inc acquires 80% of Sub Inc on August 1, 2019 for cash of $180,000, the Shareholders' Equity section of Parent's consolidated balance sheet on the date of acquisition would total to what amount under the fair value enterprise method?
Assuming that Parent Inc acquires 80% of Sub Inc on August 1, 2019 for cash of $180,000, the assets section of Parent's consolidated balance sheet on the date of acquisition would total to what amount under the fair value enterprise method?
Assuming that Parent Inc acquires 80% of Sub Inc on August 1, 2019 for cash of $180,000, the liabilities section of Parent's consolidated balance sheet on the date of acquisition (August 1, 2019) would total to what amount under the fair value enterprise method?
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!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.