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Chapter 2 Homework 2 10 points 392655: Advanced Accounting Theory and Practice MGMT X 124A (Summer 2023) eBook 03:55:03 Mc Graw Hill Print References Computer
Chapter 2 Homework 2 10 points 392655: Advanced Accounting Theory and Practice MGMT X 124A (Summer 2023) eBook 03:55:03 Mc Graw Hill Print References Computer software Equipment Client contracts In-process research and development Notes payable Problem 2-30 (Static) (LO 2-4, 2-5, 2-7, 2-8) Pratt Company acquired all of the outstanding shares of Spider, Inc., on December 31, 2021, for $495,000 cash. Pratt will operate Spider as a wholly owned subsidiary with a separate legal and accounting identity. Although many of Spider's book values approximate fair values, several of its accounts have fair values that differ from book values. In addition, Spider has internally developed assets that remain unrecorded on its books. In deriving the acquisition price, Pratt assessed Spider's fair and book value differences as follows: Cash Receivables Inventory Investment in Spider Computer software Buildings (net) Equipment (net) Client contracts Goodwill Total assets Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings Total liabilities and equities $ At December 31, 2021, the following financial information is available for consolidation (credit balances in parentheses): SASA 0 0 (60,000) $ Book Values Fair Values $ 20,000 $ 70,000 40,000 30,000 100,000 40,000 (65,000) Pratt 36,000 116,000 140,000 495,000 210,000 595,000 308,000 0 0 ezto.mheducation.com $ Saved (170,000) (752,000) Spider $ 1,900,000 $ 350,000
Problem 2-30 (Static) (LO 2-4, 2-5, 2-7, 2-8) Pratt Company acquired all of the outstanding shares of Spldec, Inc, on December 31. 2021, for $495,000 cosh. Pratt will operate Spider as a wholly owned subsidiary with a separate legal and accounting identity. Aithough many of Spider's book values approximate fair values, several of its accounts have fair values that differ from book values, in addition, Spider has internally developed assets that remain untecorded on its books. In deriving the acquisition price, Pratt assessed Spider's fair and book value differences as follows: At December 31, 2021, the following financial information is available for consolidation (credit balances in parentheses): Pratt Company acquired all of the outstanding shares of Spidet, inc, on December 31, 2021, for $495,000 cash: Pratt will operate Spider as a wholly owned subsidlary with a separate legal and accounting identity. Although many of Spider's book values approximate fair values, several of its accounts have fair values that differ from book values. In addison, Spider has intemally developed assets that remain unrecorded on its books, in deriving the acquisition price. Pratt assessed Spider's fair and book volue difforences as follows: At December 31,2021 , the following financial information is available for consolidation (crodit balances in parentheses)Step by Step Solution
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