Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On December 31, 20X1, Par Inc and Sub Corp reported current assets of $65,427 and $10,909 respectively on their balance sheets. Immediately following the reporting,

On December 31, 20X1, Par Inc and Sub Corp reported current assets of $65,427 and $10,909 respectively on their balance sheets. Immediately following the reporting, Par Inc purchased all of Sub Corp's Common Shares on January 1, 20X2, for $43,623 in cash. On the acquisition date, Sub's current assets had a fair value of $28,345. The fair value of the remaining identifiable net assets was $11,994. The Common Shares accounts of Par and Sub were $88,929 and $12,131, respectively, immediately before the acquisition. The Retained Earnings accounts of Par and Sub were $8,723 and $10,983, respectively, immediately before the acquisition. (There were no other equity accounts.) What should be the reported consolidated total equity of the combined entity immediately after the acquisition? a. $100,093 b. $95,211 c. $97,652 d. $92,769 e. $90,328

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Accounting A Business Planning Approach

Authors: Noah P. Barsky, Jr. Anthony H. Catanach

2nd Edition

1516506286, 978-1516506286

More Books

Students also viewed these Accounting questions

Question

Describe the business culture in India.

Answered: 1 week ago