Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Help Save & Exit Submit Flynn Incorporated acquires 1 0 0 percent of the outstanding voting shares of Macek Company on January 1 , 2

Help
Save & Exit
Submit
Flynn Incorporated acquires 100 percent of the outstanding voting shares of Macek Company on January 1,2024. To obtain these shares, Flynn pays $400 cash (in thousands) and issues 10,000 shares of $20 par value common stock on this date. Flynn's stock had a fair value of $36 per share on that date. Flynn also pays $15(in thousands) to a local investment firm for arranging the acquisition. An additional $10(in thousands) was paid by Flynn in stock issuance costs.
The book values for both Flynn and Macek immediately preceding the acquisition follow. The fair value of each of Flynn and Macek accounts is also included. In addition, Macek holds a fully amortized trademark that still retains a $40(in thousands) value. The figures below are in thousands. Any related question also is in thousands.
\table[[,,Macek],[Cash,Flynn,Book Value,Fair Value],[Receivables,$900,$80,$80
image text in transcribed

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

Cornerstones of Managerial Accounting

Authors: Mowen, Hansen, Heitger

3rd Edition

324660138, 978-0324660135

More Books

Students also viewed these Accounting questions