Question Details

(Solved) A parent company acquires its subsidiary by exchanging 40,000 shares of its Common Stock, with a mar— ket value on the acquisition date of $25 per...


A parent company acquires its subsidiary by exchanging 40,000 shares of its Common Stock, with a mar— ket value on the acquisition date of $25 per share, for all of the outstanding voting shares of the investee. a. b. What is the total fair value of the subsidiary on the acquisition date? Prepare the consolidation entry or entries on the date of acquisition given the following balance sheets of the parent and subsidiary on the date of acquisition. Balance Sheet Parent Subsidiary Assets Cash ........................................................ $ 405,000 $ 226,000 Accounts receivable ............................................ 1,280,000 348,000 Inventory .................................................... 1,940,000 447,000 Equity investment .............................................. 1,000,000 Property, plant and equipment (PPE), net ........................... 9,332,000 827,000 $13,957,000 $1,848,000 Liabilities and stockholders’ equity Accounts payable .............................................. $ 627,000 $ 127,000 Accrued liabilities .............................................. 736,000 221,000 Long-term liabilities ............................................ 3,000,000 500,000 Common stock ................................................ 1,370,000 100,000 APIC ........................................................ 3,200,000 125,000 775,000 Retained earnings ............................................. 5,024,000 C
This text was automatically generated from the attachment. Please refer to the attachment to view this question.
This question was created from aa2e_hal_ch02.pdf https://www.coursehero.com/file/14710038/aa2e-hal-ch02pdf/?focusQaId=10576049

 


Solution details:
STATUS
Answered
QUALITY
Approved
ANSWER RATING

This question was answered on: Sep 05, 2019

PRICE: $18

Solution~000200193304.zip (25.37 KB)

Buy this answer for only: $18

This attachment is locked

We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free solution (Deadline assured. Flexible pricing. TurnItIn Report provided)

Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
SiteLock

About this Question

STATUS

Answered

QUALITY

Approved

DATE ANSWERED

Sep 05, 2019

EXPERT

Tutor

ANSWER RATING

GET INSTANT HELP/h4>

We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

  • As a reference for in-depth understanding of the subject.
  • As a source of ideas / reasoning for your own research (if properly referenced)
  • For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student.

NEW ASSIGNMENT HELP?

Order New Solution. Quick Turnaround

Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN YOUR SET DEADLINE.

Order Now