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makvit [3.9K]
4 years ago
6

Arturo Company pays $4,000,000 cash and issues 20,000 shares of its $2 par value common stock (fair value of $50 per share) for

all of Westmont’s common stock in a merger, after which Westmont will cease to exist as a separate entity. Stock issue costs amount to $25,000 and Arturo pays $42,000 for legal fees to complete the transaction. Prepare Arturo’s journal entries to record its acquisition of Westmont.
Business
1 answer:
serious [3.7K]4 years ago
7 0

Answer:

As follows:

Explanation:

For acquisition of Westmont Company.

Inventory dr. 600,000

Land dr. 990,000

Buildings dr. 2,000,000

Customer Relationships dr. 800,000

Goodwill dr. 690,000

Accounts Payable cr. 80,000

Common Stock cr. 40,000

Additional paid-up capital cr. 960,000

Cash cr. 4,000,000

For legal fees

Services Expense dr 42,000

Cash cr 42,000

For stock issuance

Additional Paid-In Capital dr 25,000

Cash cr 25,000

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Answer:

A bond is simply a loan taken out by a company. Instead of going to a bank, the company gets the money from investors who buy its bonds. In exchange for the capital, the company pays an interest coupon, which is the annual interest rate paid on a bond expressed as a percentage of the face value.

Explanation:

4 0
3 years ago
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Marc and michelle are married and earned salaries this year of $69,200 and $13,950, respectively. in addition to their salaries,
lana66690 [7]

Part of question :

What is the total amount of Marc and Michelle's deductions from AGI?

Answer and Explanation:

Let's assume Marc and Michelle are filing a joint tax return.

Total salaries from Marc and Michelle = $69200+$13950 = $ 83150

interest on corporate bonds which is taxable = $1150

total income = $ 83150+$1150= $84300

deductions include:

The IRA contribution =$ 3150

The alimony to ex wife= $ 2150

Total deduction = $ 5300

Agreegate income= $ 84300-$5300=$79000

Marc and Michelle have options to choose standard deduction of $24000 from AGI or itemised deduction of 2% of AGI=$1580

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Therefore taxable income =$79000-$24000=$55000

Total deduction=$24000

8 0
3 years ago
The beginning balance on the monthly bank statement for Aretha's checking account was $462.79, and the ending balance was $256.0
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Presented below is the stockholders' equity section of Mead Corporation at December 31, 2006: Common stock, par value $20; autho
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Answer:

a. $1,965,000

Explanation:

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