Question
[The following information applies to the questions displayed below.] On July 1, TruData Company issues 9,600 shares of its common stock with a $5 par
[The following information applies to the questions displayed below.]
On July 1, TruData Company issues 9,600 shares of its common stock with a $5 par value and a $45 fair value in exchange for all of Webstat Companys outstanding voting shares. Webstats precombination book and fair values are shown below along with book values for TruDatas accounts.
| TruData | Webstat | Webstat | |||||||||
| Book Values | Book Values | Fair Values | |||||||||
| Revenues (1/1 to 7/1) | $ | (246,400 | ) | $ | (140,000 | ) | |||||
| Expenses (1/1 to 7/1) | 150,000 | 84,000 | |||||||||
| Retained earnings, 1/1 | (122,000 | ) | (140,000 | ) | |||||||
| Cash and receivables | 176,000 | 52,000 | $ | 52,000 | |||||||
| Inventory | 176,000 | 146,000 | 176,000 | ||||||||
| Patented technology (net) | 246,000 | 178,000 | 216,000 | ||||||||
| Land | 390,000 | 214,000 | 240,000 | ||||||||
| Buildings and equipment (net) | 90,000 | 72,000 | 72,000 | ||||||||
| Liabilities | (534,000 | ) | (366,000 | ) | (344,000 | ) | |||||
| Common stock | (314,000 | ) | (64,000 | ) | |||||||
| Additional paid-in capital | (11,600 | ) | (36,000 | ) | |||||||
rev: 05_10_2017_QC_CS-88998, 05_18_2017_QC_CS-89463
On its acquisition-date consolidated balance sheet, what amount should TruData report as patented technology (net)?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Communication And Auditing A Step By Step Guide
Authors: Melanie McKay, Elizabeth Rosa
1st Edition
075931652X, 978-0759316522
