Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please complete the table table for me. Returns to Pratt Company acquired all of the outstanding shares of Spider, Inc., on December 31, 2021, for

please complete the table table for me. image text in transcribed
image text in transcribed
Returns to Pratt Company acquired all of the outstanding shares of Spider, Inc., on December 31, 2021, for $497,700 cash. Pratt will operate Spider as a wholly owned subsidiary with a separate legal and accounting identity. Although many of Spider's book values approximate fair values, several of its accounts have fair values that differ from book values. In addition, Spider has internally developed assets that remain unrecorded on its books. In deriving the acquisition price, Pratt assessed Spider's fair and book value differences as follows: Computer software Equipment client contracts In-process research and development Notes payable Book Values Fr Values $ 52,500 $ 101,500 63,800 49,200 111,000 31,580 (185,500) (111,650) At December 31, 2021, the following financial information is available for consolidation (credit balances in parentheses: Pratt 30, 200 133,500 168,500 497, 700 247,500 605,250 341,000 @ Spider $ 19,900 54,000 69,500 a 52,500 172,000 63,800 Cash Receivables Inventory Investment in Spider Computer software Buildings (net) Equipment (net) client contracts Goodwitt Total assets Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings Total liabilities and equities $ 2,023, 650 $ 431,780 $ (97, 40e) $ (56,000) (525, 250) (105,500) (380,000) (100,000 (170,000 (25.000) (851.000) (145,200) $12,023,658) $(431,700) Dronare a rnnenlilator halanra choot for Dratt and Chinter ac nf Paramher 31 2021 Next > 21 of 30 31

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

A Blueprint For Lean Audit Lead Your Company To Higher Performance Levels

Authors: Maurice Washpun

1st Edition

B09R3DSLFF, 979-8408643707

More Books

Students also viewed these Accounting questions

Question

3. What are the current trends in computer hardware platforms?

Answered: 1 week ago