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Park Company acquires an 85%interest in Sunland Company on January 2, 2015. The resulting difference between book value and the value implied by the purchase price in the amount of $120,000 is entirel...
See AnswerQ: On January 1, 2014, Packard Company purchased an 80%
On January 1, 2014, Packard Company purchased an 80% interest in Sage Company for $600,000. On this date Sage Company had common stock of $150,000 and retained earnings of $400,000. Sage Company’s equ...
See AnswerQ: Padilla Company purchased 80% of the common stock of Sanoma Company
Padilla Company purchased 80% of the common stock of Sanoma Company in the open market on January 1, 2013, paying $31,000 more than the book value of the interest acquired. The difference between book...
See AnswerQ: On January 1, 2013, Point Corporation acquired an 80
On January 1, 2013, Point Corporation acquired an 80% interest in Sharp Company for $2,000,000. At that time Sharp Company had capital stock of $1,500,000 and retained earnings of $700,000. The book v...
See AnswerQ: Preston Company acquired the assets (except for cash) and
Preston Company acquired the assets (except for cash) and assumed the liabilities of Saville Company. Immediately prior to the acquisition, Saville Company’s balance sheet was as fol...
See AnswerQ: The balance sheets of Petrello Company and Sanchez Company as of
The balance sheets of Petrello Company and Sanchez Company as of January 1, 2014, are presented below. On that date, after an extended period of negotiation, the two companies agreed to merge. To effe...
See AnswerQ: Pretzel Company acquired the assets (except for cash) and assumed
Pretzel Company acquired the assets (except for cash) and assumed the liabilities of Salt Company on January 2, 2015. As compensation, Pretzel Company gave 30,000 shares of its common stock, 15,000 sh...
See AnswerQ: P Company acquired the assets and assumed the liabilities of S Company
P Company acquired the assets and assumed the liabilities of S Company on January 1, 2013, for $510,000 when S Company’s balance sheet was as follows: Fair values of S Company&acir...
See AnswerQ: On January 1, 2012, Parker Company purchased 95% of
On January 1, 2012, Parker Company purchased 95% of the outstanding common stock of Sid Company for $160,000. At that time, Sid’s stockholders’ equity consisted of...
See AnswerQ: Pritano Company acquired all the net assets of Succo Company on
Pritano Company acquired all the net assets of Succo Company on December 31, 2013, for $2,160,000 cash. The balance sheet of Succo Company immediately prior to the acquisition showed: As part of th...
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