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On December 31, 2014, Pacifica, Inc., acquired 100 percent of the voting stock of Seguros Company. Pacifica will maintain Seguros as a wholly owned subsidiary

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On December 31, 2014, Pacifica, Inc., acquired 100 percent of the voting stock of Seguros Company. Pacifica will maintain Seguros as a wholly owned subsidiary with its own legal and accounting identity. The consideration transferred to the owner of Seguros included 50,000 newly issued Pacifica common shares ($20 market value, $5 par value) and an agreement to pay an additional $130,000 cash if Seguros meets certain project completion goals by December 31, 2015. Pacifica estimates a 50 percent probability that Seguros will be successful in meeting these goals and uses a 4 percent discount rate to represent the time value of money. Immediately prior to the acquisition, the following data for both firms were available: Sepuron Seprn Feir Valusa Paciica Book Valu %1,200 000 E5000 marm Expers Net inaumer atd , 114 at incona Dalens dedd Retained eanings 12//14 05.000 30,000 SN,500 s 110.000 50 n00 100,000 300 000 s a5,000 190 00 S 85000 80,000 600,000 200 Cah Receiles and inentony Propety, plant, and equpment fradenela Tol a50.00 160,00 $2580,000 san0oos Ube s 600 000s 00,000m so80000 Common ke Addsonal pd capta Tetared eaning Tal h and equtn (0000 1,185.0008 In addition, Pacifica assessed a research and development project under way at Seguros to have a fair value of $100,000. Although not yet recorded on its books, Pacifica paid legal fees of $15.000 in connection with the acquisition and $9,000 in stock issue costs. Prepare the following a. Pacifica's entries to account for the consideration transferred to the former owners of Seguros, the direct combination costs, and the stock issue and registration costs. (Use a o.961538 present value factor where applicable.) h Anostacouisition.colunms.ofaceonnte for Pacifica m addidon, Pacnrea assessed a research and development project under way at Seguros to have a fair value of $100,000. Although not yet recorded on its books, Pacifica paid legal fees of $15,000 in connection with the acquisition and $9,000 in stock issue costs. Prepare the following: a. Pacifica's entries to account for the consideration transferred to the former owners of Seguros, the direct combination costs, and the stock issue and registration costs. (Use a o.961538 present value factor where applicable.) b. A postacquisition column of accounts for Pacifica. c. A worksheet to produce a consolidated balance sheet as of December 31,, 2014 Submit yourwork in an excel sheet

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