Answer:
Debit : Cash $44,000
Debit : Inventory $76,000
Debit : Land $109,000
Debit : Buildings $249,000
Debit : Equipment $121,000
Credit : Accounts Payable $63,000
Credit : Shares (30,000 x $6) $180,000
Credit ; Gain on Bargain Purchase $356,000
Explanation:
Assets and liabilities are acquired at their Fair Value Amounts instead of Cost or Book Value.
A transfer of some of the asset of a Company is referred as a Asset acquisition transaction instead of Business Combination (Acquirer obtains control of one or more businesses).
This is an asset Acquisition Transaction and no consolidated Financial Statements will be prepared.
The excess of Net Assets Acquired over the consideration is called Gain on Bargain Purchase and this amounts to $356,000.
To provide clothing for he people.
Answer:
$5,600
Explanation:
Calculation to determine the total amount that will be paid to common stockholders?
Total amount paid to common stockholders=$44,000-[(800 (12%)($100)*4]
Total amount paid to common stockholders=$44,000-($9,600*4 )
Total amount paid to common stockholders=$44,000-$38,400
Total amount paid to common stockholders=$5,600
(2014-2017=4)
Therefore the total amount that will be paid to common stockholders is $5,600
