Question
Problems 16 through 19 are based on the following information: On July 1, TruData Company issues 10,000 shares of its common stock with a $5
-
Problems 16 through 19 are based on the following information:
On July 1, TruData Company issues 10,000 shares of its common stock with a $5 par value and a $40 fair value in exchange for all of Webstat Companys outstanding voting shares. Webstats precombination book and fair values are shown along with book values for TruDatas accounts as follows.
Table Summary: Header rows have no data for Column 1. The last column is empty for first three data rows and last couple rows.
TruData Book Values Webstat Book Values Webstat Fair Values Revenues (1/1 to 7/1) $(250,000) $(130,000) Expenses (1/1 to 7/1) 170,000 80,000 Retained earnings, 1/1 (130,000) (150,000) Cash and receivables 140,000 60,000 $ 60,000 Inventory 190,000 145,000 175,000 Patented technology (net) 230,000 180,000 200,000 Land 400,000 200,000 225,000 Buildings and equipment (net) 100,000 75,000 75,000 Liabilities (540,000) (360,000) (350,000) Common stock (300,000) (70,000) Additional paid-in capital (10,000) (30,000)
-
Page 79On its acquisition-date consolidated balance sheet, what amount should TruData report as goodwill?
-
0
-
$15,000
-
$35,000
-
$100,000
-
On its acquisition-date consolidated balance sheet, what amount should TruData report as patented technology (net)?
-
$200,000
-
$230,000
-
$410,000
-
$430,000
-
On its acquisition-date consolidated balance sheet, what amount should TruData report as common stock?
-
$70,000
-
$300,000
-
$350,000
-
$370,000
-
On its acquisition-date consolidated balance sheet, what amount should TruData report as retained earnings as of July 1?
-
$130,000
-
$210,000
-
$260,000
-
$510,000
Problems 16 through 19 are based on the following information:
On July 1, TruData Company issues 10,000 shares of its common stock with a $5 par value and a $40 fair value in exchange for all of Webstat Companys outstanding voting shares. Webstats precombination book and fair values are shown along with book values for TruDatas accounts as follows.
Table Summary: Header rows have no data for Column 1. The last column is empty for first three data rows and last couple rows.
TruData Book Values Webstat Book Values Webstat Fair Values Revenues (1/1 to 7/1) $(250,000) $(130,000) Expenses (1/1 to 7/1) 170,000 80,000 Retained earnings, 1/1 (130,000) (150,000) Cash and receivables 140,000 60,000 $ 60,000 Inventory 190,000 145,000 175,000 Patented technology (net) 230,000 180,000 200,000 Land 400,000 200,000 225,000 Buildings and equipment (net) 100,000 75,000 75,000 Liabilities (540,000) (360,000) (350,000) Common stock (300,000) (70,000) Additional paid-in capital (10,000) (30,000)Page 79On its acquisition-date consolidated balance sheet, what amount should TruData report as goodwill?
-
0
-
$15,000
-
$35,000
-
$100,000
On its acquisition-date consolidated balance sheet, what amount should TruData report as patented technology (net)?
-
$200,000
-
$230,000
-
$410,000
-
$430,000
On its acquisition-date consolidated balance sheet, what amount should TruData report as common stock?
-
$70,000
-
$300,000
-
$350,000
-
$370,000
On its acquisition-date consolidated balance sheet, what amount should TruData report as retained earnings as of July 1?
-
$130,000
-
$210,000
-
$260,000
-
$510,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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