Tiger Company and Bulldog Company merge on January 1, 2018. Before the merger transaction, the...
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Accounting
- Tiger Company and Bulldog Company merge on January 1, 2018. Before the merger transaction, the balance sheets of the two companies are as follows:
|
(In thousands) | Tiger Company | Bulldog Company |
| Assets | $8,300 | $4,200 |
| Liabilities | 1,900 | 1,200 |
| Common stock ($3 par value) | 600 | 300 |
| Additional paid-in capital | 1,200 | 900 |
| Retained earnings | 4,600 | 1,800 |
| Total liabilities and equities | $8,300 | $4,200 |
Tiger issues 50,000 shares of its common stock with a market value of $3,400 thousand to the owners of Bulldog in return for their 100,000 shares of Bulldog Company common stock. The assets of Bulldog Company have a market value in excess of book value of $100 thousand. Tiger is the parent company.
REQUIRED:
Prepare a consolidated balance sheet for the Tiger Company on January 1, 2018.
- What are total assets of the consolidated entity?
- What amount of goodwill appears on the consolidated balance sheet?
- What is the book value of consolidated Common Stock?
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