Bar's stock is currently trading at $40 per share. Bar will incur $5,000 of acquisition costs in acquiring Vicker and $4,000 of acquisition costs in acquiring Kendal. Bar will also incur $15,000 of registration and issuance costs for the shares issued in both acquisitions. Bar's stockholders' equity is as follows: Common stock ($10 par) $,200,000 Paid in capital in excess of par............... 800,000 Retained earnings 750,000 Record the acquisitions on the books of Bar Corporation. Value analysis is suggested to guide your work. Pro forma income after an acquisition. Moon Company is the acquisition of Yount, Inc., on January 1, 2015. If Moon acquires Yount, it will pay $730,000 in cash to Yount and acquisition costs of $20,000. The January 2015, balance sheet of Yount, Inc., is anticipated to be as follows: Fair values agree with book values except for the inventory and the depreciable fixed assets, which have fair values of $70,000 and $400,000, respectively. Your projections of the combined operations for 2015 are as follows: Combined sales .......... $200,000 Combined cost of goods sold, including Yount's beginning inventory, at book value, which will be sold in 2015 .......... 120,000 Other expenses not including depreciation of Yount assets .......... 25,000 Bar's stock is currently trading at $40 per share. Bar will incur $5,000 of acquisition costs in acquiring Vicker and $4,000 of acquisition costs in acquiring Kendal. Bar will also incur $15,000 of registration and issuance costs for the shares issued in both acquisitions. Bar's stockholders' equity is as follows: Common stock ($10 par) $,200,000 Paid in capital in excess of par............... 800,000 Retained earnings 750,000 Record the acquisitions on the books of Bar Corporation. Value analysis is suggested to guide your work. Pro forma income after an acquisition. Moon Company is the acquisition of Yount, Inc., on January 1, 2015. If Moon acquires Yount, it will pay $730,000 in cash to Yount and acquisition costs of $20,000. The January 2015, balance sheet of Yount, Inc., is anticipated to be as follows: Fair values agree with book values except for the inventory and the depreciable fixed assets, which have fair values of $70,000 and $400,000, respectively. Your projections of the combined operations for 2015 are as follows: Combined sales .......... $200,000 Combined cost of goods sold, including Yount's beginning inventory, at book value, which will be sold in 2015 .......... 120,000 Other expenses not including depreciation of Yount assets .......... 25,000
