1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Sergio [31]
2 years ago
14

Plumber Corporation acquired all of Socket Corporation's voting shares on January 1, 20X2, for $482,000. At that time, Socket re

ported common stock outstanding of $92,000 and retained earnings of $130,000. The book values of Socket's assets and liabilities approximated fair values, except for land, which had a book value of $92,000 and a fair value of $112,000, and buildings, which had a book value of $225,000 and a fair value of $410,000. Land and buildings are the only noncurrent assets that Socket holds.
Required:
a. Compute the amount of goodwill at the date of acquisition Goodwill
b. Prepare the consolidating entry or entries required immediately.
Business
1 answer:
Semenov [28]2 years ago
7 0

Answer:

Part a

$55,000

Part b

Debit : Common Stock  $92,000

Debit : Retained Earnings $130,000

Debit : Revaluation Reserve ($20+ $185) $205,000

Debit : Goodwill $55,000

Credit : Investment in Subsidiary - Socket Corporation $482,000

Explanation:

Goodwill is the excess of Purchase price over the Net Assets Taken over at acquisition date.

The Net Assets taken over can be presented by the Equity of the Investee. That is the sum of Common Stock, Retained Earnings and Revaluation Reserves made to reflect fair value adjustments at acquisition date.

Note how the Revaluation Reserve ended with $205,000 following increase of $20,000 on value of land and $185,000 on value of buildings to reflect fair values.

The elimination journal needs to be prepared at consolidation to eliminate common items as reflected by Part b above.

You might be interested in
The death of a promisor in a personal services contract discharges an agreement. However, if a promisor dies, other types of con
IRINA_888 [86]

Answer:

The interpretation of the discussion is characterized throughout the interpretation section elsewhere here.

Explanation:

  • The reinstatement including its service agreement shall be signed throughout the event of termination of each of the wings of the party in such a way that perhaps the replacement does not instantaneously embrace plausible transformations depending on the temperature acknowledged either by promiser.
  • Unless the particular responsibilities set out during this Agreement aren't adequately accomplished as well as throughout the lack of mention including its new contractual obligations.
  • The same would be true whether it is approximately necessary to manage the service agreement when the world collapses. After that, Suo-moto seems to be the cancelation including its service agreement. It would have the natural world of consciousness of leases. Because if the real estate of the dead person is expected to take responsibility again for contractual agreement through by the dearly departed.
5 0
2 years ago
Security Analysts that have evaluated Concordia Corporation, have determined that there is a 15% chance that the firm will gener
dexar [7]

Answer:

3.17

Explanation:

Expected earnings per share = (15%x2.40)+(60%x3.10)+(25%x3.80)

4 0
3 years ago
The Company deposits $6,900 in an account that earns interest at an annual rate of 8%, compounded quarterly. The $6,900 plus ear
astra-53 [7]

Answer:

$8750.87

Explanation:

This is compound interest problem. The formula used to solve this would be:

F=P(1+r)^t

Where

F is the future value (what we want, after 3 years)

P is the initial value (given 6900)

r is the rate of interest per period

here, 8% per year, so 8/4 = 2% per period (since compounded per quarter)

t is the time (3 years and compounding per year so times of compounding is 3*4 = 12), so t = 12

Substituting, we get our answer:

F=P(1+r)^t\\F=6900(1+0.02)^{12}\\F=6900(1.02)^{12}\\F=8750.87

<u>There will be about $8750.87 at the account at the end of 3 years!</u>

8 0
3 years ago
Your healthy 63-year-old neighbor is about to retire and comes to you for advice. From talking with her, you find out she was pl
pashok25 [27]

Answer:

Both mutual funds and money market funds are similar in the sense that they pool money from several investors in a variety of instruments. The difference is that money market funds pool the money in very liquid, short-term securities, while mutual funds do the same but in less liquid, longer-term securities.

The 63-year-old neighbor should therefore split the money around 60/40, 60% of the funds for mutual funds, in order to have long-term security, and 40% in the money market funds, in order to have quick cash available when needed.

5 0
2 years ago
Shale Oil Corporation combines its assets and debts with those of Tierra Frakking Company to form Unified Resources, Inc. Shale
andriy [413]

Answer:

1. c. a consolidation

2. a. all of Shale's and Tierra's assets

3. c. all of Shale's and Tierra's debts

Explanation:

1. When multiple companies join up together to form a new company, this is called a Consolidation which is what Shale Shale Oil Corporation and Tierra Frakking Company did when they formed Unified Resources, Inc.

2. In a Consolidation, the previously separate companies move in with all their debt and assets to form the new company. As such, Unified Resources acquires all of Shale's and Tierra's assets.

3. As previously stated, in a Consolidation, the previously separate companies move in with all their debt and assets to form the new company. As such, Unified Resources assumes all of Shale's and Tierra's debts as well.

7 0
3 years ago
Other questions:
  • Is it possible that there really was a krait under the sheet?
    9·1 answer
  • Which of the following will not be a consequence of an import tariff?
    11·1 answer
  • What is Constant Term? ​
    13·2 answers
  • Albend Holmes wants to deposit $4,500 in a bank account that pays 8.25 percent annually. How many years will it take for his inv
    7·1 answer
  • Calculate Producer Surplus if Reservation Price=20, Price=8, &amp; Quantity=10.
    9·1 answer
  • When companies adopt the strategy-making and strategy execution process it requires they start by
    12·1 answer
  • Heap Corporation is considering an investment in a project that will have a two year life. The project will provide a 10% intern
    6·1 answer
  • Jen traded in her old car for her heart's desire, a new Lexus sedan. The Lexus is considered a specialty product.
    15·2 answers
  • The Fed can reduce the federal funds rate by a. decreasing the money supply. To decrease the money supply it could buy bonds. b.
    5·1 answer
  • Omar is setting up his company in quickbooks and selects the accrual basis of accounting. how will his business record income an
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!