THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 5 THROUGH 10.
On October 30, 2013 Y corporation issued 100000 shares of its no-par, no stated-value common stock [current fair value $12 a share] for 18800 shares of the 20000 outstanding shares $20 par common stock of X company. The $150000 out-of-pocket costs of the business combination paid by Y on October 30, 2013, were as follows, $90000 directly related to the business combination; and $60000 indirect costs. Prior to the business combination, separate balance sheets of the constituent companies were as follows:
Assets
Y
X
Lia & Stockholders equity
Y
X
Cash
200000
100000
Current liabilities
800000
400000
A/R
400000
200000
Long term debts
0
100000
inventory
600000
300000
Common stocks no par
1200000
Plant assets
1300000
1000000
common stocks, $20 par
400000
Retained Earnings
500000
700000
total
2500000
1600000
total
2500000
1600000
Current fair values of X's identifiable net assets differed their carrying amounts as follows: Inventories $340000, Plant assets 1100000
Required: select the correct answer
5 The cash account of Y after business combination is --------
A
$200,000
C
$150,000
B
$50,000
D
$70,000.
6 The stock investment account in the balance sheet of Y is --------
A
$1,2,000,000
C
$1,290,000
B
$1,260,000
D
1,250,000.
7 After business combination. The value of common stock in Y balance sheet is----
A
$2,400,000
C
$2,490,000
B
$1,200,000
D
$2,340,000
8business combination goodwill is----
A
$124,400 positive goodwill
C
$74400 positive goodwill
B
$124,400 negative goodwill
D
$74400 negative goodwill
9The minority interest is----
A
$124,400
C
$150,000
B
$74400
D
124,600.
10 The value of consolidated inventory is
A
$900,000
C
$940000
B
$$860,000
D
$960000.
11 Occurs when a new corporation is formed to take over the assets and operations of two or more separate business entities and dissolves the previously separate entities
A- Legal consolidation
B- Legal merger
C- Acquisition
D- Trading securities
361 Done Advanced ACCOUNTING 20 Fi... THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 5 THROUGH 10 On October 30, 2013 Y corporation issued 100000 shares of its no-par, no stated value common stock current for value S12 a share] for 18800 shares of the 2000 outstanding shares 520 par common stock of X company The 5150000 out-of-pocket costs of the business combination paid by Y on October 30, 2013. were as follows, 590000 directly related to the business combination, and $60000 indirect costs. Prior to the business combination, separate balance sheets of the constituent companies were as follows: Current fair values of X's identifiable net assets differed their carrying amounts as follows: Laskaries 5340000, Plants top Required: select the correct answer 5- The cash account of Y after business combination is SE BD 6- The "stock investment account in the balance sheet of Y is ASICS BD125.000 7- After business combination. The value of common stock in Y halance sheet is AOC BSD 8-business combination goodwill is A Speech 9-The minority interestis ASS BAR 10 - The value of consolidated inventory is 11 - Occurs when a new corporation is formed to take over the assets and operations of two or more separate business entities and dissolves the previously separate entities Legal consolidation Acquista 361 Done Advanced ACCOUNTING 20 Fi... THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 5 THROUGH 10 On October 30, 2013 Y corporation issued 100000 shares of its no-par, no stated value common stock current for value S12 a share] for 18800 shares of the 2000 outstanding shares 520 par common stock of X company The 5150000 out-of-pocket costs of the business combination paid by Y on October 30, 2013. were as follows, 590000 directly related to the business combination, and $60000 indirect costs. Prior to the business combination, separate balance sheets of the constituent companies were as follows: Current fair values of X's identifiable net assets differed their carrying amounts as follows: Laskaries 5340000, Plants top Required: select the correct answer 5- The cash account of Y after business combination is SE BD 6- The "stock investment account in the balance sheet of Y is ASICS BD125.000 7- After business combination. The value of common stock in Y halance sheet is AOC BSD 8-business combination goodwill is A Speech 9-The minority interestis ASS BAR 10 - The value of consolidated inventory is 11 - Occurs when a new corporation is formed to take over the assets and operations of two or more separate business entities and dissolves the previously separate entities Legal consolidation Acquista
