Question
Can someone help me get a detailed explanation of how this is computed? Thank you. Consider companies with the pre-acquisition balance sheets presented below. Investor
Can someone help me get a detailed explanation of how this is computed? Thank you.
Consider companies with the pre-acquisition balance sheets presented below. Investor Company purchases 100% of Investee Companys stock at book value by issuing new common stock. Complete the columns for Investors post-acquisition balance sheet and the Consolidated Company post-acquisition balance sheet.
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| Pre-acquisition balance sheets | Post-acquisition balance sheets | ||
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| Investor Company | Investee Company | Investor Company (Equity Method) | Consolidated Company |
| Current Assets | $41,000 | $33,000 |
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| Investment |
|
|
|
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| Other Assets | 202,000 | 54,000 |
|
|
| Total Assets | $243,000 | $87,000 |
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|
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| Liabilities | $95,000 | $29,000 |
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| Common Stock | 70,000 | 32,000 |
|
|
| Retained Earnings | 78,000 | 26,000 |
|
|
| Total Liabilities and Equity | $243,000 | $87,000 |
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Business Finance 101 Monopolies Accounting Audits And Blockchain
Authors: Louis Bevoc
1st Edition
1791808182, 978-1791808181
