Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Par Inc purchased all of the outstanding common shares of Sub Corp for cash of $337,551 on Jan 1, Year 1. On the date of

Par Inc purchased all of the outstanding common shares of Sub Corp for cash of $337,551 on Jan 1, Year 1. On the date of acquisition, Sub's identifiable net assets had a carrying value of $270,031. The acquisition differential was allocated to the excess of fair value over book value as follows: inventory's fair value was higher by $26,989; Equipment's fair value was lower by $16,869; Trademarks' fair value was higher by $21,617; and Bonds Payable's fair value was higher by $6,747. Equipment, Trademarks, and Bonds Payable each had an amortizable life of ten (10) years. What will be the net consolidated adjustment to reflect the annual amortization of the differences between fair values and carrying values in Year 1?

a.

$26,789

b.

$28,798

c.

$27,459

d.

$28,129

e.

$26,119

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

Audit Analytics Data Science For The Accounting Profession

Authors: J. Christopher Westland

1st Edition

3030490904, 9783030490904

More Books

Students also viewed these Accounting questions

Question

What challenges does GE have to face in the HRM field today?

Answered: 1 week ago