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Question 1: A 100% asset acquisition of Sub Company by Parent Company (using cash and a bond issue) would most likely require which of the
| Question 1: | A 100% asset acquisition of Sub Company by Parent Company (using cash and a bond issue) would most likely require which of the following? |
| a) | Minority Interest |
| b) | CR - Inventory $105,000 |
| c) | CR - Common Stock $100,000 |
| d) | None of the above |
| Parent Company Balance Sheet | Sub Company Balance Sheet | ||||
| Assets, Liabilities & Equities | Book Value | Assets, Liabilities & Equities | Book Value | Fair Value | |
| Cash | $250,000 | Cash | $40,000 | $40,000 | |
| AR | $30,000 | AR | $15,000 | $10,000 | |
| Inventory | $150,000 | Inventory | $105,000 | $200,000 | |
| Land | $100,000 | Land | $60,000 | $100,000 | |
| Plant and Equipment | $600,000 | Plant and Equipment | $400,000 | $300,000 | |
| Less: Accumulated Depreciation | -$150,000 | Less: Accumulated Depreciation | -$150,000 | ||
| Total Assets | $980,000 | Total Assets | $470,000 | $650,000 | |
| AP | $20,000 | AP | $50,000 | $50,000 | |
| Common Stock | $100,000 | Common Stock | $100,000 | ||
| Additional Paid In Capital | $560,000 | Additional Paid In Capital | $60,000 | ||
| Retained Earnings | $300,000 | Retained Earnings | $270,000 | ||
| Total Liabilities & Equity | $980,000 | Total Liabilities & Equity | $480,000 | ||
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Annual Independent Audits And Reporting Requirements US Federal Deposit Insurance Corporation Regulation FDIC
Authors: The Law Library
2018 Edition
1727250419, 978-1727250411
