Question
Atlas Ltd merges with Beta Corp, acquiring it for $125 million. The ledgers before the merger are: Ledger (in millions) Atlas Beta Cash $180 $25
Atlas Ltd merges with Beta Corp, acquiring it for $125 million. The ledgers before the merger are:
Ledger (in millions) | Atlas | Beta |
Cash | $180 | $25 |
Receivables | $110 | $18 |
Inventory | $120 | $20 |
Property, plant, equipment | $800 | $200 |
Intangibles | $90 | $20 |
Total | $1300 | $283 |
Beta’s inventory is undervalued by $15 million, and intangibles are undervalued by $18 million.
Required: Adjust Atlas’s ledger immediately following the merger.
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College Accounting A Contemporary Approach
Authors: David Haddock, John Price, Michael Farina
3rd edition
77639731, 978-0077639730
