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

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Accounting

Parkovash, Incorporated, obtained 100 percent of Salerno Company's common stock on January 1,2023, by issuing 10,600 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 $123,500. However, its equipment (with a 5-year remaining life) was undervalued by $5,200 in the company's accounting records. Also, Salerno had developed computer software with an assessed value of $30,300, although no value had been recorded on Salerno's books. The computer software had an estimated remaining useful life of 10 years.
The following balances come from the individual accounting records of these two companies as of December 31,2023:
\table[[Items,Parkovash,Salerno],[Revenues,$(715,000),$(299,000)
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