Lecture $8$ Handout $1$

Practice Exercise: Consolidation at subsequent dates

Assume that the Lowell Corporation acquired the Boston Corporation on December $31,2009$ by exchanging $1,000$ shares of $$1$ par Lowell Corporation common stock for $100\%$ of the Boston Corporation's common stock. The market price per share of the Lowell Corporation common stock was $$48.$ In addition, the Lowell Corporation paid $$2,000$ in other combination costs and $$1,000$ in stock issue costs. Both companies maintain separate accounting records after the acquisition. The following information is available immediately prior to the acquisition.

$\backslash$table$[[,\backslash$table$[[$Lowell$],[$Book Value$],[\frac{12}{31}\frac{?}{09}$

$$

Practice Exercise: Consolidation at subsequent dates

Assume that the Lowell Corporation acquired the Boston Corporation on December $31,2009$ by exchanging $1,000$ shares of $$1$ par Lowell Corporation common stock for $100\%$ of the Boston Corporation's common stock. The market price per share of the Lowell Corporation common stock was $$48.$ In addition, the Lowell Corporation paid $$2,000$ in other combination costs and $$1,000$ in stock issue costs. Both companies maintain separate accounting records after the acquisition. The following information is available immediately prior to the acquisition.

$\backslash$table$[[$Accounts$,$t

able$[[$Lowell$],[$Book Value$],[\frac{12}{31}\frac{?}{09}$

Lecture $8$ Handout $1$

Practice Exercise: Consolidation at subsequent dates

Assume that the Lowell Corporation acquired the Boston Corporation on December $31,2009$ by exchanging $1,000$ shares of $$1$ par Lowell Corporation common stock for $100\%$ of the Boston Corporation common stock. The market price per share of the Lowell Corporation common stock was $$48,$ In addition, companies maintain separate accounting records anation costs and $$1,000$ in stock issue costs. Both available immediately prior to the acquisition.

The allocation Table is as follows:

Required: Complete the Consolidated worksheet for $\frac{12}{31}\frac{?}{2011}.$

Business combination accounted for as an acquisition

and the equity method is used