Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Asset acquisition vs. stock purchase (fair value differs book value)
Assume an investor purchases the net assets of an investee for the cash purchase price is $75,600. The investor is willing to purchase the investee's business for this amount because the fair value of PPE is $70,560 and the fair value of a (previously unrecognized) customer list is $15,120 (the fair values of all other assets and liabilities are equal to their book values). The investee company reports the following balance sheet on the acquisition date:
Cash
$5,040 Accounts payable
$10,080
Accounts receivable
10,080 Accrued liabilities
15,120
Inventories
20,160
Current assets
35,280
Current liabilities
25,200
Long-term liabilities
PPE, net
50,400
Stockholders' equity
40,320
Total assets
$85,680
Total liabilities & equity
Question a. Provide the journal entry if the investor purchases the assets and assumes the liabilities of the investee company.
Question b. Provide the journal entry if the investor purchases all of the stock of the investee's shareholders.
Finally, determine the gain from leverage if there are personal tax rate of 15% on stock income and 25% on debt income
assume that your understanding of internal controls over acquisitions and cash disbursements and the related tests of
Compute the amount of 2015 dividends, in total and per share, payable to each class of stockholders for each case. Show computations. Round per-share amounts to two decimal places.
the detailing department of jackson manufacturing company has the following production and manufacturing cost data for
Prepare an amortization schedule that would be suitable for both the lessor and the lessee and that covers all the years involved.
Complete the vertical analysis by computing each line item (a)(f) as a percentage of sales revenues. Round to the nearest whole percentage. Does the percentage that you calculated in 1(a) suggest that the decline in fuel costs in 2013 contributed to ..
Prepare next years 1st quarter sales budget for Country Cookin Inc and prepare next year's 1st quarter production budget for Country Cookin Inc.
remember that this is an individual effort and forms must be prepared manually, that is, without the use of tax software
Barriers to Entry. Analyze the major barriers for entry and exit into the airline industry. Explain how each barrier can foster either monopoly or oligopoly. What barriers, if any, do you feel give rise to monopoly that will allow the government t..
Other operating expenses include $4,200 of monthly depreciation expense and $900 of monthly insurance expense that was prepaid for the year on March 1.
Explain what is contract rate and market rate. Which rate is used to calculate the periodic interest payments and which rate is used to calculate price of bond
business transactions often involve the exchange of property goods or services for notes or similar instruments that
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd