Record the entries for the purchase of the net assets

Reference no: EM131026230

Mans Company is about to purchase the net assets of Eagle Incorporated, which has the following balance sheet:

Assets
Accounts receivable		$ 60,000
Inventory		100,000
Equipment	$ 90,000
Accumulated depreciation	(50,000)	40,000

Land and buildings	$300,000
Accumulated depreciation	(100,000)	200,000
Goodwill		60,000
Total assets		$460,000

Liabilities and Stockholders' Equity
Bonds payable		$ 80,000
Common stock, $10 par		200,000
Paid-in capital in excess of par		100,000
Retained earnings		80,000
Total liabilities and equity		$460,000

Mans has secured the following fair values of Eagle's accounts:

Inventory	$130,000
Equipment	60,000
Land and buildings	260,000
Bonds payable	60,000

Acquisition costs were $20,000.

Required:

Record the entries for the purchase of the net assets of Eagle by Mans (statutory merger) at the following cash prices:

c.	$480,000

Reference no: EM131026230

Questions Cloud

What is the present value or worth of this bond : Assume a $1,000 face value bond has a coupon rate of 8.5 percent paid semiannually and has an eight-year life. If investors are willing to accept a 10 percent rate of return on bonds of similar quality, what is the present value or worth of this bond..

What is output per unit of capital : If the value of A is 10, and there are 100 units of K and 400 units of labor, what is the value of output equal to in this economy? Show your work. Given the values in part (a), what is output per worker? Given the values in part (a), what is outp..

What will be the value of the investment in two years : Your brother has asked you to help him with choosing an investment. He has $6,000 to invest today for a period of two years. You identify a bank CD that pays an interest rate of 0.0400 annually with the interest being paid quarterly. What will be the..

Compute numbers and explicate five different possibilities : We receive a $400,000 mortgage from the bank for 30 years. A VP at the bank, tells us to fully amortize the mortgage we need to pay $5,000 monthly. First, we would like to know how much the yearly mortgage rate the bank charges us. Fifth, the VP of t..

Record the entries for the purchase of the net assets : Record the entries for the purchase of the net assets of Eagle by Mans (statutory merger) at the following cash prices:

Explain what does regular tournament strong mean : Here we need to first figure out something more about outdegrees and indegrees and orders of regular digraphs. Try to find a regular digraps with 3, 4, 5 ,6 vertices, and generalize.

What is the present value of this growing perpetuity : You are evaluating a growing perpetuity product from a large financial services firm. The product promises an initial payment of $21,000 at the end of this year and subsequent payments that will thereafter grow at a rate of 0.05 annually. If you use ..

Analysis period for the four mutually exclusive alternatives : A cost analysis is to be made to determine what, if anything, should be done in a situation offering three "do-something" and one "do-nothing" alternatives. Use a 10-year analysis period for the four mutually exclusive alternatives. At the end of Yea..

Illustrate what was the unemployment rate : The U.S. government reported in July 2004 that there were 75.6 million people not in the labor force; 147.9 million in the civilian labor force also 139.7 million employed. Based on these numbers, Illustrate what was the unemployment rate?

User Account

All Pages