Reference no: EM13756367
The following are preliminary financial statements for Black Co. and Blue Co. for the year ending December 31, 20X1 prior to Black's acquisition of Blue.Black co Blue Co Sales 360,000 228,000 Expenses (240,000) (132,000) Net income 120,000 96,000 Retained earnings 1/1/11 480,000 252,000 Net income (from above) 120,000 96,000 Dividends paid (36,000) 0 Retained earnings 12/31/11 564,000 348,000 Current assets 360,000 120,000 Land 120,000 108,000
Building (net) 480,000 336,000 Total assets 960,000 564,000 Liabilities 108,000 132,000
Common Stock 192,000 72,000 Add'l paid-in capital 96,000 12,000 Retained earnings 12/31/11 564,000 348,000 Total Liab & Stock. Equity 960,000 564,000
On December 31, 20X1 (subsequent to the preceding statements), Black exchanged 10,000 shares of its $10 par value common stock for all of the outstanding shares of Blue. Black's stock on that date has a fair value of $60 per share. Black was willing to issue 10,000 shares of stock because Blue's land was appraised at $204,000. Black also paid $14,000 to several attorneys and accountants who assisted in creating this combination.
Required: Assuming that these two companies retained their separate legal identities, prepare a consolidation worksheet as of December 31, 20X1 after the acquisition transaction is completed.
|
Potential strategic benefits of managing product
: The recognition of the potential strategic benefits of managing product, information and financial flows across companies is known as
|
|
Taxable income of sting corporation
: In the current year, Sting Corporation had net income per books of $65,000, tax-exempt interest of $1,500, excess contributions of $3,000, excess tax depreciation over book depreciation of $4,500, premiums paid on term life insurance on corporate ..
|
|
Firms materials requirements planning
: As part of the management team for PPQ Parts manufacturing company, you are tasked with selecting the best software packages for the firm's materials requirements planning (MRP), capacity requirement planning (CRP), and enterprise resource planning (..
|
|
What are the dangers slowing down economic growth
: There are many factors that help the growth of the economy, but two of these factors are more important for economic global growth. What do you think are the two main factors that contribute to global economic growth? What are the dangers slowing dow..
|
|
Prepare a consolidation worksheet
: Assuming that these two companies retained their separate legal identities, prepare a consolidation worksheet as of December 31, 20X1 after the acquisition transaction is completed.
|
|
Particular product in an assembly line operation
: The Dynaco Manufacturing Company produces a particular product in an assembly line operation. One of the machines on the line is a drill press that has a single assembly line feeding into it. A partially completed unit arrives at the press to be work..
|
|
Evolution of purchasing and supply management
: Briefly discuss these 4 periods in the evolution of purchasing and supply management.
|
|
Compute the predetermined overhead rates
: Compute the predetermined overhead rates that should be used during 2014 in Department A and B. Compute the total overhead cost applied to job 145.
|
|
Create public relations campaign for financial institution
: In your group, create a public relations campaign for a financial institution that has recently received negative exposure in the media pertaining to its lack of responsiveness to those wishing to modify existing home loans. The goal of your campaign..
|