Q: Pratt Company acquired all of Spider, Inc.’s outstanding shares
Pratt Company acquired all of Spider, Inc.’s outstanding shares on December 31, 2018, for $495,000 cash. Pratt will operate Spider as a wholly owned subsidiary with a separate legal...
See AnswerQ: Allerton Company acquires all of Deluxe Company’s assets and liabilities for cash
Allerton Company acquires all of Deluxe Company’s assets and liabilities for cash on January 1, 2018, and subsequently formally dissolves Deluxe. At the acquisition date, the followi...
See AnswerQ: On June 30, 2018, Streeter Company reported the following account
On June 30, 2018, Streeter Company reported the following account balances: On June 30, 2018, Princeton Company paid $310,800 cash for all assets and liabilities of Streeter, which will cease to exi...
See AnswerQ: SafeData Corporation has the following account balances and respective fair values on
SafeData Corporation has the following account balances and respective fair values on June 30: Privacy First, Inc., obtained all of the outstanding shares of SafeData on June 30 by issuing 20,000 sh...
See AnswerQ: On January 1, NewTune Company exchanges 15,000 shares of
On January 1, NewTune Company exchanges 15,000 shares of its common stock for all of the outstanding shares of On-the-Go, Inc. Each of NewTune’s shares has a $4 par value and a $50 f...
See AnswerQ: On December 31, Pacifica, Inc., acquired 100 percent of
On December 31, Pacifica, Inc., acquired 100 percent of the voting stock of Seguros Company. Pacifica will maintain Seguros as a wholly owned subsidiary with its own legal and accounting identity. The...
See AnswerQ: Riggins Company accounts for its investment in Bostic Company using the equity
Riggins Company accounts for its investment in Bostic Company using the equity method. During the past fiscal year, Bostic reported other comprehensive income from translation adjustments related to i...
See AnswerQ: In a pre-2009 business combination, Acme Company acquired all
In a pre-2009 business combination, Acme Company acquired all of Brem Company’s assets and liabilities for cash. After the combination Acme formally dissolved Brem. At the acquisitio...
See AnswerQ: On February 1, Piscina Corporation completed a combination with Swimwear Company
On February 1, Piscina Corporation completed a combination with Swimwear Company. At that date, Swimwear’s account balances were as follows: Piscina issued 30,000 shares of its com...
See AnswerQ: Which of the following does not represent a primary motivation for business
Which of the following does not represent a primary motivation for business combinations? a. Combinations are often a vehicle to accelerate growth and competitiveness. b. Cost savings can be achieved...
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