Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Could you please help me answer those questions? Thank you Top Corporation acquired 100% of Sun Corporation's common stock on December 31, 2002. Balance sheet

Could you please help me answer those questions? Thank you image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Top Corporation acquired 100% of Sun Corporation's common stock on December 31, 2002. Balance sheet data for the two companies immediately following the acquisition is Item Top $49,000 110.000 Sun $30,000 45,000 70,000 25,000 400,000 (165,000) Cash Accounts Receivable Inventory 130,000 Land 80,000 500,000 (223,000) 198,000 $844,000 $61,500 95,000 Buildings & Equipment Less: Acc Depr Investment in Sun Total Assets $405,000 $28,000 37,000 200,000 50,000 90,000 $405,000 Accounts Payable Taxes Payable Bonds Payable Common Stock Retained Earnings Total Liabilities& Equity 280,000 150,000 257,500 $844,000 At the date of the business combination, the book values of Sun's net assets and liabilities were equal to their fair values except for inventory, which had a fair value of $85,000 and land, which had a fair value of $45,000. All of the Sub's inventory was sold 2003. There was no impairment to goodwill in 2002 or 2003. Question 1 (1 point) What is the fair value of consideration given by Top in exchange for 100% of Sun Corporation's common stock? A) $198,000 B) $100,000 C) $140,000 D) $405,000 Saved Question 2 (1 point) What amount of goodwill would be reported? A) so O B) s23,000 C) S43,000 D $68 000 Saved Question 7 (1 point) What is the total value of the differential at 12/31/2002? A) $35,000 O B) $15,000 C) $58,000 D) $40,000 Question 8 (1 point) What is the total value of the differential at 12/31/20032 A) $58,000 B) $35,000 C) $20,000 D) $43.000 Question 9 (1 point) How much amortization expernse should be recorded in the eliminating entries in 2002? A) $5,000 B) s0 C) $7,000 D) $15,000 Question 10 (1 point) How much amortization expense should be recorded in the eliminating entries in 2003? A) $7,000 B) $3,500 C) $5,000 D) $15,000 Question 11 (1 point) Prepare the basic eliminating entry to eliminate the investment held in Sun 12/31/2002

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions