Question
X Co acquired 100% of Y Co outstanding capital stock for $430,000 cash. Immediately before the purchase, the balance sheets of both reported the
X Co acquired 100% of Y Co outstanding capital stock for $430,000 cash. Immediately before the purchase, the balance sheets of both reported the following: X CO Y CO Assets 2,000,000 Liabilities 750,000 400,000 400,000 Common Stock 1,000,000 310,000 600,000 40,000 Retained Earnings Liabilities & Stockholders' Equity 2,000,000 750,000 At the date of purchase, the fair value of Y assets was $50,000 more than the Book value amounts. In the consolidated balance sheet prepared immediately after the purchase, the consolidated stockholders' equity should amount to
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Get StartedRecommended Textbook for
Advanced Financial Accounting
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
10th edition
78025621, 978-0078025624
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