Question
Please help to show the workings: Please note that this is the second time this question has been posted as the first answer was incorrect.
Please help to show the workings:
Please note that this is the second time this question has been posted as the first answer was incorrect.
Maryhill Corp. purchased all of Hood River Company's common stock for $3,612,000 cash on January 1. When analyzing the purchase price, Maryhill Corp. determined that the other assets of Hood River were undervalued by $633,600 and that the company had an unrecorded liability of $240,000 related to ongoing litigation. Any excess purchase price was for goodwill.
Use the following table to consolidate the balance sheets of the two companies as of the acquisition date.
| Maryhill | Hood River | Consolidating Adjustments | Consolidated Balance Sheet |
Investment in Hood River | $3,612,000 |
|
|
|
Other assets | 6,156,000 | $2,452,800 |
|
|
Goodwill |
|
|
|
|
Total assets | $9,768,000 | $2,452,800 |
|
|
|
|
|
|
|
Liabilities | $4,060,800 | $1,166,400 |
|
|
Common stock | 2,052,000 | 540,000 |
|
|
Retained earnings | 3,655,200 | 746,400 |
|
|
Total Liabilities & Equity | $9,768,000 | $2,452,800 |
|
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started