Answered step by step
Verified Expert Solution
Question
1 Approved Answer
On December 3 1 , 2 0 2 3 , Powder Corporation acquired 1 0 0 % of the common shares of Talc Corporation. There
On December Powder Corporation acquired of the common shares of Talc Corporation. There were no fair value differences or goodwill resulting from this transaction. The following information extracts from the December for Powder and Talc: Additional information: On December Powder sold a piece of equipment to Talc, recording a profit of $ At that time, the stimated useful life of the equipment of years. In Talc sold $ in inventory to Powder. At the end of Powder still held of the inventory. In Talc sold $ in inventory to Powder. Powder still held of the inventory at the end of Talc earns gross profit on all of its inventory sales. Powder uses the cost method to account for its investment in Talc. Both companies pay tax at a rate of What is the inventory amount that would be recorded on the December consolidated statement of financial osition? $ $ $ $Wooden Reed Inc. WRI issued voting common shares to acquire all of the assets and liabilities of Creative Instrument LtdCIL On the acquisition date, WRI's shares were trading at $ per share. After the transaction, CIL owned of WRI's outstanding shares. Below are the statements of financial position of both companies immediately before the transaction, along with the fair values of CIL's assets and liabilities: If the consolidated statement of financial position was created immediately after the acquisition, the consolidated common share account will be: $ $ $ $
On December Powder Corporation acquired of the common shares of Talc Corporation.
There were no fair value differences or goodwill resulting from this transaction. The following information
extracts from the December for Powder and Talc:
Additional information:
On December Powder sold a piece of equipment to Talc, recording a profit of $ At that time, the
stimated useful life of the equipment of years.
In Talc sold $ in inventory to Powder. At the end of Powder still held of the inventory. In
Talc sold $ in inventory to Powder. Powder still held of the inventory at the end of Talc earns
gross profit on all of its inventory sales.
Powder uses the cost method to account for its investment in Talc. Both companies pay tax at a rate of
What is the inventory amount that would be recorded on the December consolidated statement of financial
osition?
$
$
$
$Wooden Reed Inc. WRI issued voting common shares to acquire all of the assets and liabilities of Creative
Instrument LtdCIL On the acquisition date, WRI's shares were trading at $ per share. After the transaction,
CIL owned of WRI's outstanding shares. Below are the statements of financial position of both companies
immediately before the transaction, along with the fair values of CIL's assets and liabilities:
If the consolidated statement of financial position was created immediately after the acquisition, the consolidated
common share account will be:
$
$
$
$
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started