Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the above is the question and relavent information

The above is the question and relavent information, the below...

70.2K

Verified Solution

Question

Accounting

image

The above is the question and relavent information, the below is the textbook solution on chegg.

image

Where is the book value aspect coming from? Is it just the stockholder's equity? Also, why are we dividing 60k by 80%? Thanks for the explanation in advance!

Use the following information for Problems 17 through 21: On January 1, Park Corporation and Strand Corporation had condensed balance sheets as follows: Park Strand Current assets... .000 40.000 $160,000 $60,00 Noncurrent assets ,000 50.000 On January 2, Park borrowed $60,000 and used the proceeds to obtain 80 percent of the outstanding common shares of Strand. The acquisition price was considered proportionate to Strand's total fair value. The $60,000 debt is payable in 10 equal annual principal payments, plus interest, beginning December 31. The excess fair value of the investment over the underlying book value of the acquired net assets is allocated to inventory (60 percent) and to goodwill (40 percent). On a consolidated balance sheet as of January 2, what should be the amount for each of the following? LO 4-2 17. Current assets a. $105,000 b. $102,000 c. $100,000 d. $90,000

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

Accounting
1.2K views

Tami Tyler opened Tami’s Creations, Inc., a small manufacturingcompany, at the beginning of the...

Biology
1.2K views

nalysis If one person with the trait for Huntington s disease Hh has a child...

Biology
1.2K views

Nervous impuses can travel over a neuron at a maximum velocity of 1 m sec...

Physics
1.2K views

The gravitational force between two objects is proportional to 1 R and not as 1...

Physics
1.2K views

The half life of a radioactive substance is 20 minutes The approximate time interval 1...

Basic Math
1.2K views

ist all the elements of the following set Use set notation and the listing method...

Basic Math
1.2K views

Rewrite the equation in terms of base e. Express the answer in terms of a...

Calculus
1.2K views

ou can not receive nor give help for this test This test is open book...

Algebra
1.2K views

Given x can be described by the set of points 2 1 1 2 0...

Accounting
1.2K views

Please show step by step solutions on how to solve/explanations. Thank you! 2....

Accounting
1.2K views

Kesha, a sole proprietor, is engaged in a cash basis service business. In the current...

Accounting
1.2K views

Michael and Mary Mason sold their house for $380,000 in November of 2016. They had...