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On March 1, 2020 Ajax Corporation acquired all the assets and liabilities of Chelsea Corporation by issuing shares of its common stock. The following is
On March 1, 2020 Ajax Corporation acquired all the assets and liabilities of Chelsea Corporation by issuing shares of its common stock. The following is a balance sheet data for the companies prior to the business combination and immediately following the combination:
Ajax Corporation
Chelsea Corporation
Combined
Cash
$ 75,000
$ 35,000
$ 110,000
Accounts receivable
92,000
30,000
122,000
Inventory
45,000
43,000
98,000
Equipment (net)
420,000
150,000
620,000
Goodwill
XXX
Total Assets
$ 632,000
$ 258,000
XXX
Accounts payable
$ 375,000
$ 125,000
$ 500,000
Common stock, $2 par
120,000
40,000
200,000
Additional paid-in capital
85,000
30,000
245,000
Retained earnings
52,000
63,000
XXX
Total Liabilities & Equity
$ 632,000
$ 258,000
XXX
What amount of total assets will be reported by the combined entity immediately following the combination?
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Accounting, Representation And Responsibility
Authors: Niels Joseph Lennon
1st Edition
0367540436, 9780367540432
