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Can someone please help with this? Please show the calculations of how to figure out these answers. Use the following information to answer questions 5-8
Can someone please help with this? Please show the calculations of how to figure out these answers.
Use the following information to answer questions 5-8 below. All amounts are in thousands. PR Company pays $10,000 in cash and issues stock with a fair value of $40,000 to acquire all of SX Cor- poration's stock. SX will be a subsidiary of PR. Balance sheet accounts just prior to the acquisition are as follows, in trial balance format: PR Company Book value Dr (Cr) sx Corporation Book value Fair value Dr (Cr) Dr (Cr) Current assets Property, plant & equipment, net Identifiable intangible assets Current liabilities. Long-term debt Capital stock Retained earnings.... Accumulated other comprehensive income. Treasury stock Total.. 2,000 10,000 4.000 (1,600) (12,000) (5,000) (8,000) 1,000 9,600 $ 14,000 110,000 800 (13,000) 60,000) (44,400) (8,000) (200) 800 4,200 6,000 14,000 2,000) (11,600) PR's consultants find these items that are not reported on SX's balance sheet: Fair value Potential contracts with new customers . . Advanced production technology Future cost savings .. Customer lists.... $6,000 4,000 2,000 1,000 Outside consultants are paid $200 in cash, and registration fees to issue PR's new stock are $400Step by Step Solution
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