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10 book that Seguros will be successful in meeting these goals and uses a 4 percent discount rate to represent the time value of money

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10 book that Seguros will be successful in meeting these goals and uses a 4 percent discount rate to represent the time value of money Immediately prior to the acquisition, the following data for both firms were available: Seguros Seguros Pacifica Book Values Fair Values Revenues 5(1,200,000) Expenses 375.000 Net Income 5 (325,000) Retained varnings 1/1 5 (950,000) Net Income (335,000) Dividends declared 90,000 Retained earnings, 12/31 5(1,185,000 Cash 5 110,000 $ 85,000 $ 85,000 Receivables and Inventory 750,000 190,000 180,000 Property, plant, and equipment 1,400,000 450,000 600,000 Trademarks 300,000 160,000 200,000 Total assets $ 2,560,000 $385,000 Liabilities 5 (500,000) $ (160,800) 5 (180,000) Comon stock (400,000) (200,000) Additional paid in capital (475,000) (70,000) Retained earnings (1.185,000) (435,000 Total liabilities and equities $(2,560,000) 5 (885,000) Print Herences In addition, Pacifica assessed a research and development project under way at Seguros to have a fair value of $100,000. Although not yet recorded on its books, Pacifica paid legal fees of $15,000 in connection with the acquisition and $9,000 in stock issue costs. a. Prepare Pacifica's entries to account for the consideration transferred to the former owners of Seguros, the direct combination cost and the stock issue and registration costs. b.&c. Present a worksheet showing the postacquisition column of accounts for Pacifica and the consolidated balance sheet as of the acquisition date Complete this question by entering your answers in the tabs below. Beg A Red Band Prepare Pacifica's entries to account for the consideration transferred to the former owners of Seguros, the direct combination costs, and the stock issue and registration costs. Use a 0.961538 present value factor where applicable. If no entry is required for a transaction/event, select "No journal entry required in the first account hield) View transaction list w

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