Now assume PR paid ($8,000) in cash for SXs net assets. There are no consultant fees, and
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Now assume PR paid \($8,000\) in cash for SX’s net assets. There are no consultant fees, and no shares are issued. Assume that SX’s previously unrecorded intangible assets, capitalizable per GAAP, have a fair value of \($500\). PR records a bargain gain of
a. \($0\)
b. \($3,100\)
c. \($3,600\)
d. \($4,100\)
PR Company pays \($10,000\) in cash and issues no-par stock with a fair value of \($40,000\) to acquire all of SX Corporation’s net assets. SX’s balance sheet at the date of acquisition is as follows:
PR’s consultants find these items that are not reported on SX’s balance sheet:
Outside consultants are paid \($200\) in cash, and registration fees to issue PR’s new stock are \($400.\)
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