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for number 15-18 On January 1, 2022, Old Tune Company exchanged 10,000 shares of its common stock for 100% of the outstanding shares of Stop
for number 15-18
On January 1, 2022, Old Tune Company exchanged 10,000 shares of its common stock for 100% of the outstanding shares of Stop and Go Inc. Each of the Old Tune shares has a $1 par value and a 550 tair value. The fair value of the stock exchanged in the acquisition was considered equal to stop and Go's fair value, Old Tune also paid $6,000 in stock registration and issuance costs in connection with the merger. Several of Stop and Go's accounts fair value differ from their book value on this date: Pre-combination Januarv 1. 2022 hnok values for the two companies are as follows: Assuming no dissolution takes place and that both companies retain their separate legal identities, compute the following consolidated totals on January 1, 2022 for the following accounts: 15. Trademarks: A.) $150,000 B.) $80,000 C.) $70,000 D.) $0 16. Goodwill: A.) $95,000 B.) $15,000 C.) $25,000 D.) $70,000 17. Paid-in capitat: A.) 51,000,000 a.) 51,084,000 c.) $670,000 D.) $1,100,000 18. Common stock: A.) $80,000 B.) $110,000 C.) $90,000 D.) \$120,000 Step by Step Solution
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