Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. parkovash, incorporated, obtained 100 percent of s

Parkovash, Incorporated, obtained 100 percent of Salerno Company's common stock on January 1,2023, by issuing...

50.1K

Verified Solution

Question

Accounting

Parkovash, Incorporated, obtained 100 percent of Salerno Company's common stock on January 1,2023, by issuing 9,300 shares of $10 par value common stock. Parkovash's shares had a $15 per share fair value. On that date, Salerno reported a net book value of $96,650. However, its equipment (with a 5-year remaining life) was undervalued by $6,450 in the company's accounting records. Also, Salerno had developed computer software with an assessed value of $36,400, although no value had been recorded on Salerno's books. The computer software had an estimated remaining useful life of 10 years.
The following balances come from the individual accounting records of these two companies as of December 31,2023:
\table[[Items,Parkovash,Salerno],[Revenues,$(690,000),$(371,000)
image

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

Finance
1.2K views

Sloan Transmissions, Inc., has the following estimates for its new gear assembly project: price = $1,600...

Medical Sciences
1.2K views

where in the gastrointestinal tract are nutrients first absorbed into the body? give some reasons this...

Physics
1.2K views

In this problem, consider electrostatic forces only. In the figure, there is a particle of charge...

Mechanical Engineering
1.2K views

A 3/4-6 ACME threaded screw is used to lift a 2 kN load. Note that this...

Advance Math
1.2K views

For the following relations on S = {0,1,2,3}, specify which of the properties (R), (AR), (AS),...

Geometry
1.2K views

da 2 3 8 7 6 5 4 3 2 2 3 4 O 5...

Basic Math
1.2K views

3 100 Use nodal analysis to find V in Fig P3 100 0 3 mA...

Accounting
1.2K views

E5.4 and E5.5 [LO 5-1, 5.5] [The following information applies to the questions...

Accounting
1.2K views

The activity-based cost (rounded to the nearest cent) for each wire drive unit is a....

Accounting
1.2K views

The trial balance below of CAT Production as at 31 December 2018: $ Capital 10.100...

Accounting
1.2K views

QUESTION 3 Locust Software Company sells computer training packages to its business customers at a...

Accounting
1.2K views

The Walton Toy Company manufactures a line of dolls and a sewing kit. Demand for...