Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included are fair values for Sol Company accounts Cash

image text in transcribed
Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included are fair values for Sol Company accounts Cash Receivables Inventory Land Building and equipment (net) Franchise agreements Accounts payable Accrued expenses Longterm liabilities Comon stock-520 par value Common stock-55 per value Additional paid-in capital Retained earnings, 1/1 Revenues Expenses Padre Company Sol Company Book Values Book Values Fair Values 12/31 12/31 12/31 $ 138,750 82,8505 82,85e 281,250 296,000 296,000 622,500 194,000 249,500 797,500 2e3,000 178,000 770,000 278,000 338, see 256,000 273,000 306,500 (387,eee) (136,000 (136,000) (90,000) (48,250) (48,250 (982,500) (520,000) ($20,000) (660,eee) (210,090) (70,000) (90,000) (635,000) (298,00) (1,029,500) (372,660) 988,680 348,000 Note Parentheses Indicate a credit balance. On December 31. Padre acquires Sol's outstanding stock by paying $406,000 in cash and issuing 11,100 shares of its own common stock with a fair value of $40 per share. Padre paid legal and accounting fees of S21100 as well as $11,400 in stock Issuance costs Determine the value that would be shown in Padre's consolidated financial statements for each of the accounts listed. (Input all amounts os positive values.) Amounts Accounts Inventory Land Buildings and equipment Franchise agreements Goodwill Ravenues Additional paldin capital Expenses Reinad oatings 11 Retained bringe 12/31

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

Be Audit You Can Be

Authors: Awesome Auditor

1st Edition

1659095700, 978-1659095708

More Books

Students also viewed these Accounting questions

Question

How would you assess your own interpersonal (political) skills?

Answered: 1 week ago