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B) Assume that no dissolution takes place in connection with this combination. Rather, both com- panies retain their separate legal identities. Prepare a worksheet to
B) Assume that no dissolution takes place in connection with this combination. Rather, both com- panies retain their separate legal identities. Prepare a worksheet to consolidate the two companies as of the combination date.
33. On January 1, NewTune Company exchanges 15,000 shares of its common stock for all of the out standing shares of On-the-Go, Inc. Each of NewTune's shares has a $4 par value and a S50 fair value. The fair value of the stock exchanged in the acquisition was considered equal to On-the-Go's fair value. NewTune also paid $25,000 in stock registration and issuance costs in connection with the merger Several of On-the-Go's accounts' fair values differ from their book values on this date: Book Values Fair Values $ 65,000 95,000 60,000 $ 63,000 225,000 180,000 200,000 (45,000) (50,000) tion book values for the two companies are as follows: NewTune $ 29.000 65,000 95,000 60,000 105,000 $354000 Cash $60,000 150,000 400,000 840,000 320,000 $1.770,000Step by Step Solution
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