On July 1, TruData Company issues 10,000 shares of its common stock with a $5 par...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On July 1, TruData Company issues 10,000 shares of its common stock with a $5 par value and a $40 fair value in exchange for all of Webstat Company's outstanding voting shares. Webstat's precombination book and fair values are shown below along with book values for TruData's accounts. TruData Webstat Webstat Book Values $ (250,000) 170,000 (130,000) 140,000 190,000 230,000 400, 0০0 100,000 (540,000) (300,000) (10,000) Book Values Fair Values Revenues (1/1 to 7/1) Expenses (1/1 to 7/1) Retained earnings, 1/1 Cesh and receivables $ (130,000) ৪০, 0০0 (150,000) 60,000 60,000 Inventory Patented technology (net) 145,000 180,000 200,000 75,000 (360,000) (70,000) (30,000) 175,000 200,000 225,000 75,000 ( 350, 000) Land Buildings and equipment (net) Liabilities Common stock Additional paid-in capital On its acquisition-date consolidated balance sheet, what amount should TruData report as goodwill? Multiple Choice $0. $15,000. $35,000. $100,000. On its acquisition-date consolidated balance sheet, what amount should TruData report as patented technology (net)? Multiple Choice $200,000. $230,000. $410,000. $430,000. On its acquisition-date consolidated balance sheet, what amount should TruData report as common stock? Multiple Choice O $70,00o. $300,000. $350,000. $370,000. On its acquisition-date consolidated balance sheet, what amount should TruData report as retained earnings as of July 1? Multiple Choice $130,000. O $210,000. O $260,000. $510,000. On July 1, TruData Company issues 10,000 shares of its common stock with a $5 par value and a $40 fair value in exchange for all of Webstat Company's outstanding voting shares. Webstat's precombination book and fair values are shown below along with book values for TruData's accounts. TruData Webstat Webstat Book Values $ (250,000) 170,000 (130,000) 140,000 190,000 230,000 400, 0০0 100,000 (540,000) (300,000) (10,000) Book Values Fair Values Revenues (1/1 to 7/1) Expenses (1/1 to 7/1) Retained earnings, 1/1 Cesh and receivables $ (130,000) ৪০, 0০0 (150,000) 60,000 60,000 Inventory Patented technology (net) 145,000 180,000 200,000 75,000 (360,000) (70,000) (30,000) 175,000 200,000 225,000 75,000 ( 350, 000) Land Buildings and equipment (net) Liabilities Common stock Additional paid-in capital On its acquisition-date consolidated balance sheet, what amount should TruData report as goodwill? Multiple Choice $0. $15,000. $35,000. $100,000. On its acquisition-date consolidated balance sheet, what amount should TruData report as patented technology (net)? Multiple Choice $200,000. $230,000. $410,000. $430,000. On its acquisition-date consolidated balance sheet, what amount should TruData report as common stock? Multiple Choice O $70,00o. $300,000. $350,000. $370,000. On its acquisition-date consolidated balance sheet, what amount should TruData report as retained earnings as of July 1? Multiple Choice $130,000. O $210,000. O $260,000. $510,000.
Expert Answer:
Related Book For
Advanced Financial Accounting
ISBN: 978-0078025877
11th edition
Authors: Theodore E. Christensen, David M. Cottrell, Cassy JH Budd
Posted Date:
Students also viewed these accounting questions
-
In 1970, Wal-Mart offered 300,000 shares of its common stock to the public at a price of $16.50 per share. Since that time, Wal-Mart has had 11 two-for-one stock splits. On a purchase of 100 shares...
-
A subsidiary sells additional shares of its common stock to a nonaffiliate at a price that is higher than the previous book value per share. How does the sale benefit the existing shareholders?
-
A pet owner told the vet that he would drop his pet off between the hours of 9:15 AM and 1:30 PM. The vet plans to take lunch from 11:30 AM to 12:15 PM. a. What is the probability that the owner will...
-
Gamma Company adjusts its accounts at the end of each month. The following information has been assembled in order to prepare the required adjusting entries at December 31:1. A one-year bank loan of...
-
Provide an example of systematic sampling in statistical process control. Why might systematic sampling be preferred to taking random samples?
-
What factors may influence an auditor's decision on the need to use an expert?
-
What do closing entries accomplish? a. Transfer revenues, expenses, and dividends to retained earnings b. Zero out the revenues, expenses, and dividends to prepare them for the next period C. Bring...
-
Larissa Company has a unit selling price of $250, variable costs per unit of $170, and fixed costs of $140,000. Compute the break-even point in units using (a) The mathematical equation and (b)...
-
A manufacturing company is considering acquiring a stamping press. The plan calls for using the machine in a three-shift operation at a production rate of 100 parts per minute. Past experience has...
-
Paul and Donna Decker are married taxpayers, ages 44 and 42, respectively, who file a joint return for 2014. The Deckers live at 1121 College Avenue, Carmel, IN 46032. Paul is an assistant manager at...
-
The battery of an electric car operates at 400 V. To keep a regular sedan running the batteries deliver about 15 kW of power. If such car is driven for one minute, compute: 1. The total work done by...
-
January 1, 2022 2022 December 31, 2022 Raw materials inventory $19,200 $27,600 Work in process inventory 12,600 15,900 Finished goods inventory 24,900 19,320 Materials purchased $138,000 Direct labor...
-
Find the volume of a beverage can that has a height of 6.8 in. and a diameter of 3.6 in. Use 3.14 as an approximation for The volume of the can is (Type an integer or a decimal rounded to the nearest...
-
Ensign Company produces two products (Shirts and Pants), however their ability to produce these products are constrained by machine hours with total capacity of 2,000 minutes per week. Shirts Pants...
-
Heavy Rocks Company acquires 100% of the stock of Simple Machinery Co. on January 1, 2XX0, for $7,200,000 cash. As of that date Simple Machinery had the following account balances: Book Value Fair...
-
Assessment 3 - Structured Activity - Bookkeepers Policies and Procedure Manual Policies and Procedure Manual - Using the documents and tools you have created in your previous assessment tasks you are...
-
1. Carefully read the description of the Five Forces Model provided. 2. Identify a company or industry that uses the Five Forces model. 3. Describe the importance of the Five Forces Model in...
-
How has the too-big-to-fail policy been limited in the FDICIA legislation? How might limiting the too-big-to-fail policy help reduce the risk of a future banking crisis?
-
An alumna of a sorority donates $12,000 to it for restricted use in its community service activity. How does this ONPO account for the contribution? How does it account for the $12,000 expenditure?
-
Explain the concept of a one-line consolidation.
-
Describe the accounting for a foreign investment that is not consolidated with the U.S. Company.
-
Determine the displacement at \(C\) and the slope of the beam at \(A, B\), and \(C\). \(E I\) is constant. A B 8 kNm -6 m + -3 m
-
The composite simply supported steel shaft is subjected to a force of \(10 \mathrm{kN}\) at its center. Determine its maximum deflection. \(E_{\mathrm{st}}=200 \mathrm{GPa}\). 200 mm A 200 mm 200 mm...
-
Determine the magnitude of force \(\mathbf{F}\) that must be applied at the end of the overhang \(C\) so that when the force \(\mathbf{P}\) is applied, displacement at \(C\) is zero. \(E I\) is...
Study smarter with the SolutionInn App