{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-05-27T01:05:03-04:00", "answer_date": "2024-05-27 01:05:03", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "1769223", "url": "\/study-help\/questions\/purchase-of-shares-parent-co-purchases-100-of-the-common-1769223", "question_creation_date_js": "2024-05-27T01:05:03-04:00", "question_creation_date": "May 27, 2024 01:05 AM", "meta_title": "[Solved] Purchase of Shares Parent Co. purchases 1 | SolutionInn", "meta_description": "Answer of - Purchase of Shares Parent Co. purchases 100% of the common shares of Subsidiary Co. for $1,000,000 by issuing $1,000,0 | SolutionInn", "meta_keywords": "purchase,shares,parent,purchases,100%,common,subsidiary,$1,000,000,issuing,worth,balance,sheet", "question_title_h1": " Purchase of Shares Parent Co. purchases 100% of the common shares of Subsidiary Co. for $1,000,000 by issuing $1,000,000 worth of its own common", "question_title": " Purchase of Shares Parent Co. purchases 100% of the common shares", "question_title_for_js_snippet": "Purchase of Shares Parent Co purchases 100 of the common shares of Subsidiary Co for $1,000,000 by issuing $1,000,000 worth of its own common shares Subsidiary Co Balance Sheet Before Column A Subsidiary Co Acquisition Carrying Value Fair Value Current Assets Cash 25,000 25,000 Accounts Receivable, net Prepaid Deposits 5,000 5,000 50,000 Inventory, net 1,000,000 50,000 1,200,000 Total Current Assets 1,080,000 Long term Assets Patent Vehicles 100,000 350,000 250,000 250,000 Accumulated depreciation, vehicles 80,000 270,000 Total Long term Assets 370,000 Total Assets 1,450,000 Current Liabilities Accounts payable and accruals 10,000 Deferred revenue 120,000 10,000 135,000 Total Current Liabilities 130,000 Long term Liabilities Shareholder loan Bond payable Total Long term liabilities Equity 500,000 500,000 100,000 120,000 600,000 Common shares 100 Shareholders' Equity 719,900 Total Equity Total Liabilities and Equity 720,000 1,450,000 Balance Sheet After Acquisition Carrying Value", "question_description": "\"image\"image", "transcribed_text": "Purchase of Shares Parent Co. purchases 100% of the common shares of Subsidiary Co. for $1,000,000 by issuing $1,000,000 worth of its own common shares. Subsidiary Co. Balance Sheet Before Column A Subsidiary Co. Acquisition Carrying Value Fair Value Current Assets Cash 25,000 25,000 Accounts Receivable, net Prepaid Deposits 5,000 5,000 50,000 Inventory, net 1,000,000 50,000 1,200,000 Total Current Assets 1,080,000 Long-term Assets Patent Vehicles 100,000 350,000 250,000 250,000 Accumulated depreciation, vehicles 80,000 270,000 Total Long-term Assets 370,000 Total Assets 1,450,000 Current Liabilities Accounts payable and accruals 10,000 Deferred revenue 120,000 10,000 135,000 Total Current Liabilities 130,000 Long-term Liabilities Shareholder loan Bond payable Total Long-term liabilities Equity 500,000 500,000 100,000 120,000 600,000 Common shares 100 Shareholders' Equity 719,900 Total Equity Total Liabilities and Equity 720,000 1,450,000 Balance Sheet After Acquisition Carrying Value", "related_book": { "title": "Intermediate Accounting", "isbn": "032459237X, 978-0324592375", "edition": "17th Edition", "authors": "James D. Stice, Earl K. Stice, Fred Skousen", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/92.jpg", "uri": "\/textbooks\/intermediate-accounting-17th-edition-92", "see_more_uri": "" }, "free_related_book": { "isbn": "979-8218292805", "uri": "\/textbooks\/the-red-frontier-book-1-of-the-red-tomorrow-series-979-8218292805-141243", "name": "The Red Frontier Book 1 Of The Red Tomorrow Series", "edition": "" }, "question_posted": "2024-05-27 01:05:03", "see_more_questions_link": "\/study-help\/questions\/business-corporate-finance-2020-July-01", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/study-help\/basic-technical-mathematics\/find-the-inverse-of-each-of-the-given-matrices-by-the-method", "description": "Find the inverse of each of the given matrices by the method of Example 1 of this section. 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