Use the following facts for Multiple Choice problems 15 and 16: Assume that on January 1, 2013, the investor company issued 4,000 new shares of the investor com- pany's common stock in exchange for all of the Individually identifiable assets and liabilities of the investee company. Fair value approximates book value for all of the investee's identifiable net assets. The following financial statement information is for an investor company and an investee company on January 1, 2013, prepared immediately before this transaction Book Values Investor Investee Receivables & inventor Land Property & equipment Total sot.... $ 80,000 160.000 180,000 $420,000 $ 40,000 80.000 80,000 $200,000 Lab Common stock $1 pa). Additional paid he capital Retained earnings Totalb es & equity $120,000 16.000 224,000 S01000 420100 $ 64,000 8,000 120,000 8,000 $200,000 Net asets $300,000 $136.000 15. Asset acquisition (market equals book value) If this transaction is to result in the investor recording to goodwill or gain from negative goodwill) what is the per share fair value of the investor's common stock? a. Not enough information provided b. $17/share c. $19/share d. $34/share 16. Asset acquisition (market equals book value) Provide the investor company's balance (ie, on the investor's books, before consolidation) for an "In vestment in laveste account immediately following the acquisition of the investee's net assets: a. $4,000 b. $136,000 c. $200,000 d. $300,000 Use the following facts for Multiple Choice problems 15 and 16: Assume that on January 1, 2013, the investor company issued 4,000 new shares of the investor com- pany's common stock in exchange for all of the Individually identifiable assets and liabilities of the investee company. Fair value approximates book value for all of the investee's identifiable net assets. The following financial statement information is for an investor company and an investee company on January 1, 2013, prepared immediately before this transaction Book Values Investor Investee Receivables & inventor Land Property & equipment Total sot.... $ 80,000 160.000 180,000 $420,000 $ 40,000 80.000 80,000 $200,000 Lab Common stock $1 pa). Additional paid he capital Retained earnings Totalb es & equity $120,000 16.000 224,000 S01000 420100 $ 64,000 8,000 120,000 8,000 $200,000 Net asets $300,000 $136.000 15. Asset acquisition (market equals book value) If this transaction is to result in the investor recording to goodwill or gain from negative goodwill) what is the per share fair value of the investor's common stock? a. Not enough information provided b. $17/share c. $19/share d. $34/share 16. Asset acquisition (market equals book value) Provide the investor company's balance (ie, on the investor's books, before consolidation) for an "In vestment in laveste account immediately following the acquisition of the investee's net assets: a. $4,000 b. $136,000 c. $200,000 d. $300,000
