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On January 1, 2023. Parent Company Inc. acquired 100% of Subsidiary Corp.'s outstanding common stock by exchanging 37.500 shares of Parent's $2 par value common
On January 1, 2023. Parent Company Inc. acquired 100\% of Subsidiary Corp.'s outstanding common stock by exchanging 37.500 shares of Parent's $2 par value common voting stock. On January 1, 2023, Parent's voting common stock had a fair value of $40 per share. On January 1, 2023, Subsidiary Corp.'s voting common shares were selling for $6.50 per share. Subsidiary Corp.'s balances on the acquisition date, just prior to acquisition are listed below Required: Present the analysis of this combinations, compute the value of Goodwill resulting from the acquisition and prepare the journal entries of acquisition
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Step: 1
Analysis of the Acquisition 1 Consideration Transferred Parent Company Inc issued 37500 shares of its 2 par value common voting stock The fair value per share on the date of acquisition is 40 Therefor...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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