Question
Company S has no long-term marketable securities. Assume the following scenarios: Case A Assume that P Company paid $137,820 cash for 100% of the net
Company S has no long-term marketable securities. Assume the following scenarios:
Case A
Assume that P Company paid $137,820 cash for 100% of the net assets of S Company.
S COMPANY
Assets
Current Assets
Long-lived Assets
Liabilities
Net Assets
Book Value
$14,190$81,910$20,340$75,760Fair Value
19,260142,60028,460133,400
Case B
Assume that P Company paid $110,640 cash for 100% of the net assets of S Company.
S COMPANY
Assets
Current Assets
Long-lived Assets
Liabilities
Net Assets
Book Value
$14,190$81,910$20,340$75,760Fair Value
30,19072,87018,87084,190
Case C
Assume that P Company paid $14,270 cash for 100% of the net assets of S Company.
S COMPANY
Assets
Current Assets
Long-lived Assets
Liabilities
Net Assets
Book Value
$14,190$81,910$20,340$75,760Fair Value
21,20037,41042,22016,390
Complete the following schedule by listing the amount that would be recorded on P's books.
Good will Current Assets Long-lived Assets Liabilities Retained earning
Case A
Case B
Case C
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Accounting
Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett
9th edition
1118608224, 1118608227, 730323994, 9780730323990, 730319172, 9780730319177, 978-1118608227
