Question
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.
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Calculate the Goodwill at the date of acquisition (show all work)
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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 | ? |
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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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