Question
Pergola Inc. acquired 100% of the equity of the Spaghetti Company for $15 million on December 31, 2013. Immediately prior to the acquisition, the balance
Pergola Inc. acquired 100% of the equity of the Spaghetti Company for $15 million on December 31, 2013.
Immediately prior to the acquisition, the balance sheets of these two companies show following balances (in millions):
Pergola: Assets $85, Liabilities $42 and Owners' Equity $43.
Spaghetti: Assets $19, Liability $12, and Owners' Equity $7.
Appraisers estimate the fair value of Pergola's assets at $99 and that the fair value of Spaghetti's assets at $22.
Show the consolidated balance sheet of Pergola Inc. and the balance sheet of Spaghetti immediately after the acquisition. List separately goodwill, if it exists:
Consolidated Balance Sheet of Pergola Inc.
| Assets | Liabilities and Owner's Equity |
Balance Sheet of Spaghetti
| Assets | Liabilities and Owner's Equity |
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Millionaire By Thirty The Quickest Path To Early Financial Independence
Authors: Douglas R. Andrew, Emron Andrew, Aaron Andrew
1st Edition
0446501840, 978-0446501842
