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Select the correct answer THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 1 THROUGH 4. On, Dec. 20, 2013, A (the investee) was merged into B. B
Select the correct answer THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 1 THROUGH 4. On, Dec. 20, 2013, A (the investee) was merged into B. B issued 80,000 shares of its $10 par and $22 FMV per share to A stockholders for all issued and outstanding shares. The direct costs $240,000. Prior to the merger A balance sheet was (6 POINTS) la & Stockholders Assets Cost FMV equity Cost FMV Current assets S0000575.000 Long term les 75000 150000 Plant assets 1.800.000.000.000 Common stocks, Spar 500.000 Paid in capital 350.000 Retained Earn 700.000 1- The stock investment account will be debited by in the books of B A $2,000,000 C51,040,000 B$1.760,000 D52.200.000 2- The paid in capital account will increase by in the books of B A$720,000C$1.200,000 B$60.000 D5800,000 3- The amount of goodwill is---- A $2,000,000 $175.000 B51.225.000 $800,000 4-Company A-- A Will be survived chary of Will go out from existence A&B will go out from me THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 5 THROUGH 10. On October 30, 2013 Y corporation issued 100000 shares of its no par, no stated-value common stock (current fair value $12 a share) for 18800 shares of the 20000 outstanding shares S20 par common stock of X company The $150000 out-of-pocket costs of the business combination paid by Y on October 30, 2013, were as follows, 590000 directly related to the business combination, and S60000 indirect costs. Prior to the business combination, separate balance sheets of the constituent companies were as follows: 10000 Current fair values of X's identifiable net assets differed their carrying amounts as follows: Inventories 5340000, Plantas 1100000
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