Allocation of Purchase Price to Various Assets and Liabilities Assuming that S Company has no long-term marketable

Question:

Allocation of Purchase Price to Various Assets and Liabilities Assuming that S Company has no long-term marketable securities, consider the following scenarios: LO4 Case A Assume that P Company paid $130,000 cash for 100% of the net assets of S Company.
S Company Assets Current Assets Long-lived Assets Liabilities Net Assets Book Value $15,000 $85,000 $20,000 $80,000 Fair Value 20,000 130,000 30,000 120,000 Case B Assume that P Company paid $110,000 cash for 100% of the net assets of S Company.
S Company Assets Current Assets Long-lived Assets Liabilities Net Assets Book Value $15,000 $85,000 $20,000 $80,000 Fair Value 30,000 80,000 20,000 90,000 Case C Assume that P Company paid $15,000 cash for 100% of the net assets of S Company.
S Company Assets Current Assets Long-lived Assets Liabilities Net Assets Book Value $15,000 $85,000 $20,000 $80,000 Fair Value 20,000 40,000 40,000 20,000 Required:
Complete the following schedule by listing the amount that would be recorded on P’s books.
Liabilities Current Assets | Long-lived Assets

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Advanced Accounting

ISBN: 9780471218524

2nd Edition

Authors: Debra C. Jeter, Paul Chaney

Question Posted: