Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please show all work Pace Corporation acquired 100 percent of Spin Company's common stock on January 1, 2020. Balance sheet data for the two companies

image text in transcribedplease show all work

Pace Corporation acquired 100 percent of Spin Company's common stock on January 1, 2020. Balance sheet data for the two companies immediately following the acquisition follow: Spin Company $25,000 40,000 55,000 40,000 160,000 (50,000) Item Cash Accounts Receivable Inventory Land Buildings and Equipment Less: Accumulated Depreciation Investment in Spin Company Stock Total Assets Accounts Payable Taxes Payable Bonds Payable Common Stock Retained Earnings Total Liabilities and Stockholders' Equity Pace Corporation $30,000 80,000 150,000 65,000 260,000 (120,000) 150,000 $615,000 $45,000 20,000 200,000 50,000 300,000 $615,000 $270,000 $33,000 8,000 100,000 20,000 109,000 $270,000 At the date of the business combination, the book values of Spin's net assets and liabilities approximated fair value except for inventory, which had a fair value of $60,000, and land, which had a fair value of $50,000. 6. What amount of liabilities will be reported in the consolidated balance sheet prepared immediately after the business combination? |

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

Microfinance

Authors: Gianfranco A. Vento, Mario La Torre

4th Edition

1403997896, 9781403997890

More Books

Students also viewed these Accounting questions

Question

Conduct an effective performance feedback session. page 376

Answered: 1 week ago