Determine the fair value in excess of book value for palo

Assignment Help Accounting Basics

Reference no: EM133654977

Question: On January 1, 2023, Palo Verde Corporation acquired 100 percent of the voting stock of Silverstone Corporation in exchange for $2,030,000 in cash and securities. On the acquisition date, Silverstone had the following balance sheet: Cash $ 23,000 Accounts payable $ 1,050,000 Accounts receivable 97,000 Inventory 140,000 Equipment (net) 1,490,000 Common stock 800,000 Trademarks 850,000 Retained earnings 750,000 Total assets $ 2,600,000 Total liabilities and equity $ 2,600,000 At the acquisition date, the book values of Silverstone's assets and liabilities were generally equivalent to their fair values except for the following assets: Asset Book Value Fair Value Remaining Useful Life Equipment $ 1,490,000 $ 1,610,000 8 years Royalty agreements 0 160,000 4 years Trademarks 850,000 900,000 indefinite. Determine the fair value in excess of book value for Palo Verde's acquisition date investment in Silverstone

Reference no: EM133654977

Questions Cloud

Describes commissioners approach to the audit of taxpayers : Which if the following describes the Commissioner's approach to the audit of taxpayers

How you enhanced the appearance and taste : How you enhanced the appearance and taste of the pastries by filling and decorating them How you visually evaluated the cake and any adjustments you made

Benefits and fringe benefits tax liability : benefits and fringe benefits tax liability. Each correction should be supported by a brief explanation and correct referencing from legislation, along with any

Who would the owners of the companys property be : Tim, Tom, and Kevin have formed a limited liability company called TTK Enterprises. Who would the owners of the company's property be?

Determine the fair value in excess of book value for palo : Trademarks 850,000 900,000 indefinite. Determine the fair value in excess of book value for Palo Verde's acquisition date investment in Silverstone

Which may not always be in harmony with publics well-being : Companies can wield political power by masterfully crafting public relations tactics. Which may not always be in harmony with the public's well-being.

How long does it take the third team member to complete : Matt 45 minutes to complete a report. All reports are completed in 4 1/2 hours. How long does it take the third team member to complete a report

Calculating the living expenses covered ratio : calculating the Living Expenses Covered Ratio, which financial statement(s) would be needed to complete the ratio? Balance Sheet Cash Flow Statement

Discuss in detail to include definition of emerging concept : Discuss in detail to include a definition or explanation of the emerging concept, the importance it plays in the TLM field.

User Account

All Pages