Question
Peace Computer Corporation acquired 75 percent of Symbol Software Company's stock on January 2, 20X3, by issuing bonds with a par value of $77,750 and
Peace Computer Corporation acquired 75 percent of Symbol Software Company's stock on January 2, 20X3, by issuing bonds with a par value of $77,750 and a fair value of $95,250 in exchange for the shares. Summarized balance sheet data presented for the companies just before the acquisition follow:
| Peace Computer Company | Symbol Software Company | |||
| Book Value | Fair Value | Book Value | Fair Value | |
| Cash | $218,000 | $218,000 | $65,000 | $65,000 |
| Other Assets | $412,000 | $412,000 | $134,000 | $134,000 |
| Total Debits | $630,000 | $199,000 | ||
| Current Liabilities | $92,000 | $92,000 | $72,000 | $72,000 |
| Common Stock | $296,000 | $65,000 | ||
| Retained Earnings | $242,000 | $62,000 | ||
| Total Credits | $630,000 | $199,000 | ||
Prepare a consolidated balance sheet immediately following the acquisition.
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The Safety Audit Designing Effective Strategies
Authors: Roger Saunders
1st Edition
0273034480, 978-0273034483
