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I need solutions for a couple of advanced financial accounting questions E121 Combined Balance Sheet The following balance sheets were prepared for Adam Corporation and
I need solutions for a couple of advanced financial accounting questions
E121 Combined Balance Sheet The following balance sheets were prepared for Adam Corporation and Best Company on January 1, 20X2, just before they entered into a business combination: Page 36 Adam acquired all of Best Company's assets and liabilities on January 1, 20X2, in exchange for its common shares. Adam issued 8,000 shares of stock to complete the business combination. Required Prepare a balance sheet of the combined company immediately following the acquisition, assuming Adam's shares were trading at $60 each. Advanced Financial Accounting 10th edition by christensen Chapter 1, Problem E1-21 Advanced Financial Accounting 10th edition by christensen Chapter 3, Problem 3-30 P3-30 Parent Company and Consolidated Amounts Quoton Corporation acquired 80 percent of Tempro Company's common stock on December 31, 20X5, at underlying book value. The book values and fair values of Tempro's assets and liabilities were equal, and the fair value of the noncontrolling interest was equal to 20 percent of the total book value of Tempro. Tempro provided the following trial balance data at December 31, 20X5: Debit Cash 28,000 Accounts Receivable 65,000 Inventory Credit 90,000 Buildings and Equipment (net) 210,000 Cost of Goods Sold 105,000 Depreciation Expenses 24,000 Other Operating Expenses 31,000 Dividends Declared 15,000 Accounts Payable 33,000 Notes Payable 120,000 Common Stock 90,000 Retained Earnings 130,000 Sales 195,000 TOTAL Required $568,000 $568,000 a. How much did Quoton pay to purchase its shares of Tempro? b. If consolidated financial statements are prepared at December 31, 20X5, what amount will be assigned to the noncontrolling interest in the consolidated balance sheet? c. If Quoton reported income of $143,000 from its separate operations for 20X5, what amount of consolidated net income will be reported for 20X5? d. If Quoton had purchased its ownership of Tempro on January 1, 20X5, at underlying book value and Quoton reported income of $143,000 from its separate operations for 20X5, what amount of consolidated net income would be reported for 20X5Step by Step Solution
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