Question
Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included are fair values for Sol Company accounts. Padre
Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included are fair values for Sol Company accounts.
Note: Parentheses indicate a credit balance.
On December 31, Padre acquires Sols outstanding stock by paying $354,000 in cash and issuing 12,600 shares of its own common stock with a fair value of $40 per share. Padre paid legal and accounting fees of $28,400 as well as $14,100 in stock issuance costs.
Determine the value that would be shown in Padres consolidated financial statements for each of the accounts listed. (Input all amounts as positive values.) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Arturo pays cash of $4,337,500 to acquire Westmont. No stock is issued and Arturo pays $44,700 for legal fees to complete the transaction.
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