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second image is the continuity of the assignment Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included
second image is the continuity of the assignment
Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included are fair values for Sol Company accounts. Cash Receivables Inventory Land Building and equipment (net) Franchise agreements Accounts payable Accrued expenses Longterm liabilities Common stock-$20 par value Common stock-$5 par value Additional paid-in capital Retained earnings, 1/1 Revenues Expenses Padre Company Sol Company Book Values Book Values Fair Values 12/31 12/31 12/31 $ 424,000 64,400 $ 64,400 269, 250 307,000 307,000 455,000 252,000 307,600 655,000 170,000 146, 100 617,500 292,000 353, 100 257,000 235,000 274,000 (394, 000) (152,000) (152, 000) (181,000) (53,000) (53,690) (917,500) (487,500) (487,500) (660,000) (210,000) (70,000) (90,000) (400,000) (302,000) (1,019,250) (396,900) 964,000 371,000 Note: Parentheses indicate a credit balance. On December 31, Padre acquires Sol's outstanding stock by paying $184,000 in cash and issuing 16,800 shares of its own common stock with a fair value of $40 per share. Padre paid legal and accounting fees of $25,500 as well as $6,500 in stock issuance costs. Determine the value that would be shown in Padre's consolidated financial statements for each of the accounts listed. (Input all amounts as positive values.) Accounts Amounts Inventory Land sch DALL Expenses Note: Parentheses indicate a credit balance, On December 31, Padre acquires Sol's outstanding stock by paying $184,000 in cash and issuing 16,800 shares of its own common stock with a fair value of $40 per share. Padre paid legal and accounting fees of $25,500 as well as $6,500 in stock issuance costs. Determine the value that would be shown in Padre's consolidated financial statements for each of the accounts listed. (Input all amounts as positive values.) Amounts Accounts Inventory Land Buildings and equipment Franchise agreements Goodwill Revenues Additional paid-in capital Expenses Retained earnings, 1/1 Retained earnings, 12/31 earch oStep by Step Solution
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