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On December 31, 2019, Arturo, Inc acquired 100 percent of the voting stock of Westmont Company Arturo will maintain Westmontas a wholly owned subsidiary with
On December 31, 2019, Arturo, Inc acquired 100 percent of the voting stock of Westmont Company Arturo will maintain Westmontas a wholly owned subsidiary with its own legal and accounting identity Arturo, Inc. Sed $120,000 in long term bities and 90,000 common shares having par value of 4 pershanbul a fost value of $25 per share Immediately prior to the acquisition, the following data for both firms were available Westmont Westmont Arturo Book Values Revenues Fair Values $(1,200,000) Expenses $(650,000) 875,000 425,000 Net income $(325,000) $ (225.000) Retained earnings, 1/1/19 ${950,000) (260,000) Net income (325,000) (225.000) Dividends paid 90.000 50.000 Retained earnings, 12/31/19 ${1,185 000) S(435,000 Cash $110,000 $ 85.000 $ 85,000 Receivables and inventory 750,000 190,000 150,000 Property, plant, and equipment 1,400,000 450,000 550.000 Trademarks 300,000 160,000 240,000 Total assets $ 2,560,000 $ 885.000 Liabilities $(500 000) S(180.000) $(165,000) Common stock (400,000) (200,000) Additional paid in capital (475,000) (70.000) Retained earnings (1.185.000) (435,000) Total liabilities and equities $12,560,000) S(885,000) In addition, Arturo assessed a research and development project under way at Westmont to have a fair value of $180,000. Although not yet recorded on its books Pacifica paid $10.500 to lawyers accountants and brokers for assistant in the acquisition and another 525,800 in connection with stock issuance costs Required: What are the consolidated balances for the following accounts? a. Net income b. Property, plant and equipment c. Goodwill d. Additional paid-in capital
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