Answered step by step
Verified Expert Solution
Question
1 Approved Answer
What will be the Jan 1, 2022 balance in consolidated Common Stock and consolidated Total Assets accounts after the acquisition is completed? Please show Calculations
What will be the Jan 1, 2022 balance in consolidated Common Stock and consolidated Total Assets accounts after the acquisition is completed?
Please show Calculations
along with the book value of Grande's accounts: \begin{tabular}{|l|c|c|c|} \hline & Grande Book Value & Petite Book Value & Petite Fair Value \\ \hline Cash and receivables & 280,000 & 135,000 & 135,000 \\ \hline Inventory & 340,000 & 190,000 & 175,000 \\ \hline Land & 490,000 & 300,000 & 330,000 \\ \hline Buildings (net) & 830,000 & 350,000 & 340,000 \\ \hline Equipment (net) & 655,000 & 115,000 & 110,000 \\ \hline Liabilities & 900,000 & 430,000 & 410,000 \\ \hline Common stock & 580,000 & 180,000 & \\ \hline Additional paid-in capital & 730,000 & 250,000 & \\ \hline Retained earnings, 1/1/22 & 385,000 & 230,000 & \\ \hline \end{tabular} assuming Grande dissolves Petite so that Petite is no longer a separate entity. along with the book value of Grande's accounts: \begin{tabular}{|l|c|c|c|} \hline & Grande Book Value & Petite Book Value & Petite Fair Value \\ \hline Cash and receivables & 280,000 & 135,000 & 135,000 \\ \hline Inventory & 340,000 & 190,000 & 175,000 \\ \hline Land & 490,000 & 300,000 & 330,000 \\ \hline Buildings (net) & 830,000 & 350,000 & 340,000 \\ \hline Equipment (net) & 655,000 & 115,000 & 110,000 \\ \hline Liabilities & 900,000 & 430,000 & 410,000 \\ \hline Common stock & 580,000 & 180,000 & \\ \hline Additional paid-in capital & 730,000 & 250,000 & \\ \hline Retained earnings, 1/1/22 & 385,000 & 230,000 & \\ \hline \end{tabular} assuming Grande dissolves Petite so that Petite is no longer a separate entityStep 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