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USE THE FOLLOWING INFORMATION FOR 1-3 On January 1, 2020 Tupaz Co. issues 10,000 shares of its common stock with a $5 par value and

USE THE FOLLOWING INFORMATION FOR 1-3

On January 1, 2020 Tupaz Co. issues 10,000 shares of its common stock with a $5 par value and a $100 Fair Value in exchange for 100% of the outstanding voting stock of Prevost Ltd. The following are the pre-acquisition book and fair values of Prevost and the Book values of Tupazs accounts.

Tupaz Book Values

Prevost Book Values

Prevost Fair Values

Current assets

300,000

75,000

75,000

Land

250,000

25,000

40,000

Building, net

400,000

125,000

200,000

Patented Technology

100,000

0

20,000

Liabilities

(350,000)

(40,000)

(40,000)

Common Stock

(25,000)

(10,000)

APIC

(175,000)

(15,000)

Retained Earnings

(500,000

(160,000)

In addition to the assets listed above, Tupaz determines that Prevosts customer list has a $220,000 fair value at the date of acquisition

Tupaz estimates that the building has a remaining estimated life of 5 years, the patented technology has a life of 4 years and the customer list has a life of 11 years.

  1. Calculate the Goodwill at the date of acquisition (show all work)

  1. Assuming the following book balances on December 31, 2024 compute the consolidated totals for each category (Show all work):

Tupaz

Prevost

Consolidated totals

Land

300,000

40,000

?

Building

320,000

100,000

?

Patented tech

60,000

0

?

Customer List

0

0

?

  1. If tupaz had issued no additional shares since the acquisition on Jan, 1 2020 what are the consolidated totals for that? (Show all work)

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