hinst pushdown accounting that are included in the report. Assignments with the logo in the margin are available in Blanes Coume. See the Preface of the book for details. MULTIPLE CHOICE Use the following facts for Multiple Choice problems 24 through 27 (each question is independent of the others): Assume on January 1, 2019 an investor company paid $1,980 to an investee company in exchange for the following assets and liabilities transferred from the investee company: Asset (Liability) Estimated Fair Value $500 Production equipment. Factory Licenses 800 700 LOT In addition, the investor provided to the seller contingent consideration with a fair value of $200 and the investor paid an additional $80 of transaction costs to an unaffiliated third party. The consideration is not a derivative financial instrument. The fair values are measured in accordance with ntingent FASB ASC 820: Fair Value Measurement 24. Acquiring net assets that do not constitute a business Assume the net assets transferred from the investee do not qualify as a "business," as that term is de fined in FASB ASC Master Glossary. At what amount will the Licenses be reported in the financial statements of the acquiring company on January 1, 2019? $700 b. $721 c. $763 d. $791 25. Acquiring net assets that do not constitute a business Assume the net assets transferred from the investee do not qualify as a "business," as that termic de- fined in FASB ASC Master Glossary. At what amount will Goodwill be reported in the financial state- ments of the acquiring company on January 1, 2019? $ 0 b. $ 20 c. $ 60 d. $180 LOI 26. Acquiring net assets that constitute a business Assume the net assets transferred from the investee qualify as a "business," as that term is defined in FASB ASC Master Glossary. At what amount will the Licenses be reported in the financial statements of the acquiring company on January 1, 2019? $791 b. $763 c. $700 d. $693 Assume the net assets transferred from the investee quality as a business, as that term is defined FASB ASC Master Glossary. At what amount will Goodwill be reported in the financial statements of the individually identifiable assets and liabilities of the invester o Cambio 100 Chapter 21 Introduction to Business Combinations and the Consolidation Proco 27. Acquiring met assets that constitute a business LOI the acquiring company on January 1, 20197 $ 0 b. 20 $ 60 d. SIRO Use the following facts for Multiple Choice problems 28 and 29: common stock in exchange for the investee's identifiable net assets. The transaction resulted in no goodwill or bargain purchase Bain company. The investee company qualifies as a business. Fair value approximates book value for alle The following financial statement information is for an investor company and an investre company co January 1, 2019. prepared immediately before this transaction. Book Values Investor Investee Receivables & Inventories Land Property & equipment... Total assets. $160,000 320,000 350.000 $840.000 $ 80,000 160.000 160,000 $400,000 Liabilities Common stock ($1 par) Additional paid-in capital Retained earnings Total liabilities & $240,000 32,000 440,000 128,000 $B40,000 $120,000 16,000 194.000 70.000 $400.000 egyay $600,000 $280.000 Net assets. LOS LO1 28. Asset acquisition (fair value equals book value) What is the per share fair value of the investor's common stock? a $84/share b. $60/share $40/share d. $28/share 29. Asset acquisition (fair value equals book value) Provide the investor company's balance (i.e., on the investor's books, before consolidation) for an "In- vestment in Investee" account immediately following the acquisition of the investee's net assets: $210,000 b. $280,000 $600,000 d. $840,000 Use the following facts for Multiple Choice problems 30 and 31 (each question is independent of the other): The following financial statement information is for an investor company and an investee company January 1, 2019. On January 1, 2019, the investor company's common stock had a traded market value of $27 per share, and the investee company's common stock had a traded market value of $20 per share hinst pushdown accounting that are included in the report. Assignments with the logo in the margin are available in Blanes Coume. See the Preface of the book for details. MULTIPLE CHOICE Use the following facts for Multiple Choice problems 24 through 27 (each question is independent of the others): Assume on January 1, 2019 an investor company paid $1,980 to an investee company in exchange for the following assets and liabilities transferred from the investee company: Asset (Liability) Estimated Fair Value $500 Production equipment. Factory Licenses 800 700 LOT In addition, the investor provided to the seller contingent consideration with a fair value of $200 and the investor paid an additional $80 of transaction costs to an unaffiliated third party. The consideration is not a derivative financial instrument. The fair values are measured in accordance with ntingent FASB ASC 820: Fair Value Measurement 24. Acquiring net assets that do not constitute a business Assume the net assets transferred from the investee do not qualify as a "business," as that term is de fined in FASB ASC Master Glossary. At what amount will the Licenses be reported in the financial statements of the acquiring company on January 1, 2019? $700 b. $721 c. $763 d. $791 25. Acquiring net assets that do not constitute a business Assume the net assets transferred from the investee do not qualify as a "business," as that termic de- fined in FASB ASC Master Glossary. At what amount will Goodwill be reported in the financial state- ments of the acquiring company on January 1, 2019? $ 0 b. $ 20 c. $ 60 d. $180 LOI 26. Acquiring net assets that constitute a business Assume the net assets transferred from the investee qualify as a "business," as that term is defined in FASB ASC Master Glossary. At what amount will the Licenses be reported in the financial statements of the acquiring company on January 1, 2019? $791 b. $763 c. $700 d. $693 Assume the net assets transferred from the investee quality as a business, as that term is defined FASB ASC Master Glossary. At what amount will Goodwill be reported in the financial statements of the individually identifiable assets and liabilities of the invester o Cambio 100 Chapter 21 Introduction to Business Combinations and the Consolidation Proco 27. Acquiring met assets that constitute a business LOI the acquiring company on January 1, 20197 $ 0 b. 20 $ 60 d. SIRO Use the following facts for Multiple Choice problems 28 and 29: common stock in exchange for the investee's identifiable net assets. The transaction resulted in no goodwill or bargain purchase Bain company. The investee company qualifies as a business. Fair value approximates book value for alle The following financial statement information is for an investor company and an investre company co January 1, 2019. prepared immediately before this transaction. Book Values Investor Investee Receivables & Inventories Land Property & equipment... Total assets. $160,000 320,000 350.000 $840.000 $ 80,000 160.000 160,000 $400,000 Liabilities Common stock ($1 par) Additional paid-in capital Retained earnings Total liabilities & $240,000 32,000 440,000 128,000 $B40,000 $120,000 16,000 194.000 70.000 $400.000 egyay $600,000 $280.000 Net assets. LOS LO1 28. Asset acquisition (fair value equals book value) What is the per share fair value of the investor's common stock? a $84/share b. $60/share $40/share d. $28/share 29. Asset acquisition (fair value equals book value) Provide the investor company's balance (i.e., on the investor's books, before consolidation) for an "In- vestment in Investee" account immediately following the acquisition of the investee's net assets: $210,000 b. $280,000 $600,000 d. $840,000 Use the following facts for Multiple Choice problems 30 and 31 (each question is independent of the other): The following financial statement information is for an investor company and an investee company January 1, 2019. On January 1, 2019, the investor company's common stock had a traded market value of $27 per share, and the investee company's common stock had a traded market value of $20 per share
