snow co. service

/21 Marks Snow Co. is a service company that provides snow removal services for customers. Rain Co., a competitor, has approached Snow Co. with an offer to purchase their company on June 30th, 2021. The offer was accepted and control is transferred over at the end of the day on June 30th, 2021. Presented below is the balance sheet of Snow Co. and Rain Co. as at June 30th, 2021 Rain Co. Snow Co. Carrying Value Cash Carrying Value 150,100 500 Accounts receivable 10,000 20,000 Prepaid and deposits 2,000 Tools and equipment 1,000 2,000 Acc. depreciation, tools and equipment (800) (150) Vehicles 35,000 50,000 Acc. depreciation, vehicles (18,000) Total (8,050) 177,300 66,300 Accounts payable 800 1,700 Wages payable 7,500 9,700 Deferred revenue 24,500 Bank loan 150,000 Shareholder loan 20,000 Common shares 100 100 Shareholders' Equity 18,900 Total 10,300 177,300 $6,300 The following details the changes between Snow Co.'s carrying values and fair values as at June 30th, 2021. Snow Co. Carrying Value Fair value Cash 500 500 Accounts receivable 20,000 21,000 Prepaid and deposits 2,00 2,000 Tools and equipment 2.000 2,000 Acc. depreciation, tools and equipment (150) Vehicles 50,000 45,000 Acc. depreciation, vehicles (8,050) Total 66,300 70,500 Accounts payable 1,700 2,000 Wages payable 9.700 9,70 Deferred revenue 24,500 24,500 Shareholder loan 20,000 20,000 Common shares 100 Shareholders' Equity 10,300 Total 66,300 56,200 Rain Co. is offering Snow Co. $150,000 in cash for 75% of it's net assets. Part 1: a) Fill in the following related to the acquisition: 13 Acquisition date: Acquirer: Acquiree: Part 2: Using the Fair Value Enterprise (FVE) Method: Calculate goodwill 13 Record the entry of the acquirer 13 Record the entry of the acquiree 13 Part 3 Using the Identifiable Net Assets (INA) Method: Calculate good will Record the entry of the acquirer 13 Record the entry of the acquiree 13