Reference no: EM131201162
On June 30, 200X Carl Corporation purchased Lin Company by issuing 50,000 shares of stock. Stock has a market value of $15.00 per share. This acquisition is to be recorded as a statutory merger through asset acquisition. In this type of business combination Carl company acquires all the assets and liabilities of Lin Company. Lin Company is dissolved and goes out of business. Prepare the entries the purchase and combination on June 30, 200X.
Following information is shown prior to the merger activity being recorded:
Carl Company
Assets Liabilities and Capital
Cash $ 80,000 Current Liabilities $ 80,000
Inventories 80,000
Plant 300,000 Common Stock $5PV 10,000
Land 20,000 Additional Paid in Capital 190,000 Retained Earnings 200,000
Total $480,000 Total $480,000
Lin Company
Assets Liabilities and Capital
Cash $200,000 Current Liabilities $100,000
Accounts Receivable 20,000 Common Stock $10PV 150,000
Plant Assets 530,000 Additional Paid in Capital 400,000 Retained Earnings 100,000
Total $750,000 Total $750,000
Other information:
•The Lin Company Plant Assets fair market value is $600,000.
The out of pocket costs of the merger are:
•SEC Registration Statement fee $20,000
•Legal fees for the SEC Registration Statement $15,000
•Accounting fees for the SEC Registration Statement $ 5,000
•Finders Fee $ 6,000
•Legal fees for the merger $ 2,000
•Accounting fees for the merger $ 4,000
1. Prepare and post the entries to record this as a statutory merger. In a statutory merger permanent dissolution of the subsidiary occurs at the combination date.
2. Prepare an after merger balance sheet.
|
Perform an analog-todigital conversion
: The output data register is written at port address 8. The input status register is read at port address 8, and provides the value of the comparator output in the least significant bit, with other bits hardwired to 0.
|
|
Discuss the pros and cons of mandatory sentencing
: Define mandatory sentencing. Discuss the pros and cons of mandatory sentencing. Provide your opinion of whether or not you agree with mandatory sentencing provisions. Examine whether or not courts should view each case based on its own facts, or w..
|
|
Environmental regulations for companies operating in arizona
: What are some specific environmental regulations for companies operating in Arizona? Cite companies, regulations, and your thoughts about it.
|
|
Develop recommendations for strategies to address challenges
: Define both HRIS and ERP, and compare both the similarities and the differences of each process. Develop recommendations for strategies to address these challenges and help the expanding company meet its goals.
|
|
Prepare an after merger balance sheet
: Prepare and post the entries to record this as a statutory merger. In a statutory merger permanent dissolution of the subsidiary occurs at the combination date.
|
|
Perceptible in the health insurance markets
: Opportunism in health care is especially perceptible in the health insurance markets. Consider the area in which you live, specifically your state and local communities. Evaluate the social-cultural issues that are influencing adverse selection in..
|
|
Analyze key issues pertinent to victims of crime
: Analyze important issues facing the correctional enterprise today, including privatization, special needs populations, and disparities pertaining to race, religion, and economics. Analyze key issues pertinent to victims of crime.
|
|
What steps are taken before terminating an employee
: What steps are taken before terminating an employee? How are corrective measures taken? Does the employee have the right to appeal disciplinary decisions? Why or why not?
|
|
Introduction of the disruptive technology
: To what extent has the introduction of the disruptive technology influenced the existing market structure? (Your response should discuss any changes to the characteristics of that market structure and if the market structure has in fact changed.
|