Answered step by step
Verified Expert Solution
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
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 Common stock-$20 par value Common stock-$5 par 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 $ 486,500 67,350 $ 67,350 250, 500 391, see 391,600 490,899 391,800 356, 308 637,500 293,eee 182,798 840,000 393,eee 364,999 317,699 226, Bee 260,100 (382,898) (166,800) (166,890) (169, eee) (42,750) (42,758) (1,140, eee) (625,eee) (625,898) (660,600) (210,000) (70,899) (90,eee) (547,500) (333,880) (1,834, eee) (431,680) 981,899 487,eee Note: Parentheses indicate a credit balance. On December 31. Padre acquires Sol's outstanding stock by paying $319,000 in cash and issuing 14.100 shares of its own common stock with a fair value of $40 per share. Padre paid legal and accounting fees of $23.500 as well as $8.800 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 Revenues Additional paid-in capital Expenses Retained earnings, 1/1 Retained earnings, 12/31
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started