Please Include Formulas

5. On December 31, Pacifica, Inc., acquired 100 percent of the voting stock of Seguros Company. Pacifica will maintain Seguros as a wholly owned subsidiary with its own legal and accounting identity. The consideration transferred to the owner of Seguros included 50,000 newly issued Pacifica common shares (\$20 market value, \$5 par value) and an agreement to pay an additional $130,000 cash if Seguros meets certain project completion goals by December 31 of the following year. Pacifica estimates a 50 percent probability that Seguros will be successful in meeting these goals and uses a 4 percent discount rate to represent the time value of money. Immediately prior to the acquisition, the following data for both firms were available: In addition, Pacifica assessed a research and development project under way at Seguros to have a fair value of $100,000. Although not yet recorded on its books, Pacifica paid legal fees of $15,000 in connection with the acquisition and $9,000 in stock issue costs. Prepare the following: a. Pacifica's entries to account for the consideration transferred to the former owners of Seguros, the direct combination costs, and the stock issue and registration costs. (Use a 0.961538 present value factor where applicable.) b. A postacquisition column of accounts for Pacifica. c. A worksheet to produce a consolidated balance sheet as of the acquisition date. \begin{tabular}{|l|} \hline \\ \hline 1 \\ 2 \\ \hline 3 \\ \hline 4 \\ \hline 5 \\ \hline 6 \\ \hline 7 \\ \hline 8 \\ \hline 9 \\ \hline 10 \\ \hline 11 \\ \hline 12 \\ 13 \\ \hline 14 \\ \hline 15 \\ \hline 16 \\ \hline 17 \\ \hline 18 \\ 19 \\ 20 \\ \hline 21 \\ \hline 22 \\ \hline 23 \\ \hline 24 \\ \hline 25 \\ 26 \\ 27 \\ \hline 28 \\ \hline 29 \\ \hline 30 \\ \hline 31 \\ \hline 32 \\ \hline 33 \\ \hline 34 \\ \hline 36 \\ \hline 37 \\ \hline 38 \\ \hline 39 \\ \hline 40 \\ \hline 42 \\ \hline 43 \\ \hline \end{tabular} A B c D F G I J K L M Student Name: Class: Problem 02-35 Part C only: PACIFICA, INC., AND SEGUROS CO. Consolidation Worksheet December 31 Accounts Pacifica, Seguros Consolidation Entries Consolidated Revenues Expenses Net income Retained eamings, 1/1 Net income Dividends declared Retained eamings, 12/31 Cash Receivables and inventory Property, plant and Equipment Investment in Seguros Research and development asset Goodwill Trademarks Total assets Liabilities Contingent performance obligation Common stock Additional paid-in capital Retained earnings Total liabilities and equities \begin{tabular}{|l||} \hline \\ \hline 1 \\ \hline 2 \\ \hline 3 \\ \hline 4 \\ \hline 5 \\ \hline 6 \\ \hline 7 \\ \hline 8 \\ \hline 9 \\ \hline 10 \\ \hline 11 \\ \hline 12 \\ \hline 13 \\ \hline 14 \\ \hline 15 \\ \hline 16 \\ \hline 17 \\ \hline 18 \\ \hline 19 \\ \hline 20 \\ \hline 21 \\ \hline 22 \\ \hline 23 \\ \hline 24 \\ \hline 25 \\ \hline 26 \\ \hline 27 \\ \hline 28 \\ \hline 29 \\ \hline 30 \\ \hline 31 \\ \hline 33 \\ \hline 34 \\ \hline 35 \\ \hline 36 \\ \hline 38 \\ \hline \end{tabular} Seguros Company outstanding voting shares acquired by Pacifica Inc. Pacifica Company's $5 par common stock issued for acquisition - number of shares Market value of Pacifica stock at acquisition date Cash paid by Pacifica when Seguros meets certain goals Fair value of Seguros R \& D project Probability that Seguros will meet goals Discount rate used to represent time value of money Legal fees paid by Pacifica in connection with acquisition Stock issuance costs paid by Pacifica 5. On December 31, Pacifica, Inc., acquired 100 percent of the voting stock of Seguros Company. Pacifica will maintain Seguros as a wholly owned subsidiary with its own legal and accounting identity. The consideration transferred to the owner of Seguros included 50,000 newly issued Pacifica common shares (\$20 market value, \$5 par value) and an agreement to pay an additional $130,000 cash if Seguros meets certain project completion goals by December 31 of the following year. Pacifica estimates a 50 percent probability that Seguros will be successful in meeting these goals and uses a 4 percent discount rate to represent the time value of money. Immediately prior to the acquisition, the following data for both firms were available: In addition, Pacifica assessed a research and development project under way at Seguros to have a fair value of $100,000. Although not yet recorded on its books, Pacifica paid legal fees of $15,000 in connection with the acquisition and $9,000 in stock issue costs. Prepare the following: a. Pacifica's entries to account for the consideration transferred to the former owners of Seguros, the direct combination costs, and the stock issue and registration costs. (Use a 0.961538 present value factor where applicable.) b. A postacquisition column of accounts for Pacifica. c. A worksheet to produce a consolidated balance sheet as of the acquisition date. \begin{tabular}{|l|} \hline \\ \hline 1 \\ 2 \\ \hline 3 \\ \hline 4 \\ \hline 5 \\ \hline 6 \\ \hline 7 \\ \hline 8 \\ \hline 9 \\ \hline 10 \\ \hline 11 \\ \hline 12 \\ 13 \\ \hline 14 \\ \hline 15 \\ \hline 16 \\ \hline 17 \\ \hline 18 \\ 19 \\ 20 \\ \hline 21 \\ \hline 22 \\ \hline 23 \\ \hline 24 \\ \hline 25 \\ 26 \\ 27 \\ \hline 28 \\ \hline 29 \\ \hline 30 \\ \hline 31 \\ \hline 32 \\ \hline 33 \\ \hline 34 \\ \hline 36 \\ \hline 37 \\ \hline 38 \\ \hline 39 \\ \hline 40 \\ \hline 42 \\ \hline 43 \\ \hline \end{tabular} A B c D F G I J K L M Student Name: Class: Problem 02-35 Part C only: PACIFICA, INC., AND SEGUROS CO. Consolidation Worksheet December 31 Accounts Pacifica, Seguros Consolidation Entries Consolidated Revenues Expenses Net income Retained eamings, 1/1 Net income Dividends declared Retained eamings, 12/31 Cash Receivables and inventory Property, plant and Equipment Investment in Seguros Research and development asset Goodwill Trademarks Total assets Liabilities Contingent performance obligation Common stock Additional paid-in capital Retained earnings Total liabilities and equities \begin{tabular}{|l||} \hline \\ \hline 1 \\ \hline 2 \\ \hline 3 \\ \hline 4 \\ \hline 5 \\ \hline 6 \\ \hline 7 \\ \hline 8 \\ \hline 9 \\ \hline 10 \\ \hline 11 \\ \hline 12 \\ \hline 13 \\ \hline 14 \\ \hline 15 \\ \hline 16 \\ \hline 17 \\ \hline 18 \\ \hline 19 \\ \hline 20 \\ \hline 21 \\ \hline 22 \\ \hline 23 \\ \hline 24 \\ \hline 25 \\ \hline 26 \\ \hline 27 \\ \hline 28 \\ \hline 29 \\ \hline 30 \\ \hline 31 \\ \hline 33 \\ \hline 34 \\ \hline 35 \\ \hline 36 \\ \hline 38 \\ \hline \end{tabular} Seguros Company outstanding voting shares acquired by Pacifica Inc. Pacifica Company's $5 par common stock issued for acquisition - number of shares Market value of Pacifica stock at acquisition date Cash paid by Pacifica when Seguros meets certain goals Fair value of Seguros R \& D project Probability that Seguros will meet goals Discount rate used to represent time value of money Legal fees paid by Pacifica in connection with acquisition Stock issuance costs paid by Pacifica