Question
The financial statements for CAP Inc. and SAP Company for the year ended December 31, Year 5, follow: (see financial statements attached) On December 31,
The financial statements for CAP Inc. and SAP Company for the year ended December 31, Year 5, follow: (see financial statements attached)
On December 31, Year 5, after the above figures were prepared, CAP issued $300,000 in debt and 15,000 new shares to the owners of SAP to purchase all of the outstanding shares of that company. CAP shares had a fair value of $40 per share.
CAP also paid $30,000 to a broker for arranging the transaction. In addition, CAP paid $40,000 in stock issuance costs. SAP's equipment was actually worth $710,000 but its patented technology was valued at only $270,000.
Required: What are the balances for following accounts on the on the Year 5 consolidated financial statements?
| (a) | Profit | |
| (b) | Retained earnings, 12/31/Year 5 | |
| (c) | Equipment | |
| (d) | Patented technology | |
| (e) | Goodwill | |
| (f) | Ordinary shares | |
| (g) | Liabilities |
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Accounting
Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett
9th edition
1118608224, 1118608227, 730323994, 9780730323990, 730319172, 9780730319177, 978-1118608227
