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Im studying for an exam. can you help with this problem and walk through the steps you take. thanks Ch2, P25 Following are preacquisition financial
Im studying for an exam. can you help with this problem and walk through the steps you take. thanks
Ch2, P25 Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included are fair values for Sol Company accounts Pay 760k - yookt 36 680k Cash Recebles Inventory Land Building and equipment in Franchise agreements Accounts payable Accrued expenses Long-term Babilities Common stock-520 par le Common stock-55 por value Additional pidin capital Retained earrings, VI Revenues Expenses Padre Sol Company Company Book Vans Book Values Fair Values 12/31 12/31 12:31 $ 400,000 $ 120,000 $ 120.000 220.000 200,000 300.000 410.000 210,000 260.000 500,000 130,000 110.000 600.000 270,000 330.000 220,000 190.000 220.000 600.000 [120,000 0120,000! 190.000 0.0001 30,000 1900.000 510,000 10,000 6660.000 Q10,0001 070,000 190,000 690,000 (240,000) 950,000 G30,000 920.000 210,000 Note: Parentheses indicate a credit balance. On December 31. Padre acquires Sol's outstanding stock by paying S360.000 in cash and issuing 10.000 shares of its own common stock with a fair value of S40 per share. Padre paid legal and accounting fees of $20.000 as well as 55.000 in stock issuance costs. Determine the value that would be shown in Padre's consolidated financial statements for each of the accounts listed Accounts Inventory Revenues Land Additional paid in capital Buildings and equipment Expenses Franchise agreements Retained earnings in Goodwill Retained earnings, 12/31 Step by Step Solution
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