Preparing the disclosure statements for these items

Reference no: EM13134256

Could you assist me in preparing the disclosure statements for these items?

The next event that occurs is that on November 10, 2012, a Ken Corp. truck was in an accident, driven by Ken. Ken received a notice of a lawsuit in seeking $ 800,000 in damages for personal injuries suffered by the other driver. Ken Corp's counsel believes that it is reasonably possible that the other driver will be awarded an estimated amount of between $ 500,000 and $ 1,000,000. And that $ 750,000 is a better estimate of potential liability than any other amount.

In the beginning of 2012, Ken Corp changed its salvage value of equipment from 3 to 5 years. The change is material in the financial statements.

On January 2, 2013, sold, 10,000 shares of common stock, par value of $ 1.00 per share, to Ken, CEO of Ken Corporation. The market price of the stock at that time was $ 10.00 per share. This is done every year, per Ken's employment contract.

On June 1, 2012, Ken Corp acquired 100% of Chris Corp, under the Acquisition method of accounting. As part of this transaction, Ken paid $ 1,000,000 in cash, and issued 40,000 shares of stock at a price of $ 15.00 a share to the shareholders of Chris Corp. Ken paid more for Chris Corp, and then it was worth (Goodwill).

Reference no: EM13134256

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