39. The financial statements for Goodwin, Inc., and Corr Company for the year
ended December 31, 20X1, prior to Goodwin’s acquisition business combination
transaction regarding Corr, follow (in thousands):
On December 31, 20X1, Goodwin issued $600 in debt and 30 shares of its $10
par value common stock to the owners of Corr to acquire all of the outstanding
shares of that company. Goodwin shares had a fair value of $40 per share.
Goodwin paid $25 to a broker for arranging the transaction. Goodwin paid $35 in
stock issuance costs. Corr’s equipment was actually worth $1,400 but its
buildings were only valued at $560.
Compute the consideration transferred for this acquisition at December 31,
20X1.
40. The financial statements for Goodwin, Inc., and Corr Company for the year
ended December 31, 20X1, prior to Goodwin’s acquisition business combination
transaction regarding Corr, follow (in thousands):
On December 31, 20X1, Goodwin issued $600 in debt and 30 shares of its $10
par value common stock to the owners of Corr to acquire all of the outstanding
shares of that company. Goodwin shares had a fair value of $40 per share.
Goodwin paid $25 to a broker for arranging the transaction. Goodwin paid $35 in
stock issuance costs. Corr’s equipment was actually worth $1,400 but its
buildings were only valued at $560.
Compute the goodwill arising from this acquisition at December 31, 20X1.
41. The financial statements for Goodwin, Inc., and Corr Company for the year
ended December 31, 20X1, prior to Goodwin’s acquisition business combination
transaction regarding Corr, follow (in thousands):
On December 31, 20X1, Goodwin issued $600 in debt and 30 shares of its $10
par value common stock to the owners of Corr to acquire all of the outstanding
shares of that company. Goodwin shares had a fair value of $40 per share.
Goodwin paid $25 to a broker for arranging the transaction. Goodwin paid $35 in
stock issuance costs. Corr’s equipment was actually worth $1,400 but its
buildings were only valued at $560.
Compute the consolidated common stock account at December 31, 20X1.
42. The financial statements for Goodwin, Inc., and Corr Company for the year
ended December 31, 20X1, prior to Goodwin’s acquisition business combination
transaction regarding Corr, follow (in thousands):
On December 31, 20X1, Goodwin issued $600 in debt and 30 shares of its $10
par value common stock to the owners of Corr to acquire all of the outstanding
shares of that company. Goodwin shares had a fair value of $40 per share.
Goodwin paid $25 to a broker for arranging the transaction. Goodwin paid $35 in
stock issuance costs. Corr’s equipment was actually worth $1,400 but its
buildings were only valued at $560.
Compute the consolidated additional paid-in capital at December 31, 20X1.
43. The financial statements for Goodwin, Inc., and Corr Company for the year
ended December 31, 20X1, prior to Goodwin’s acquisition business combination
transaction regarding Corr, follow (in thousands):
On December 31, 20X1, Goodwin issued $600 in debt and 30 shares of its $10
par value common stock to the owners of Corr to acquire all of the outstanding
shares of that company. Goodwin shares had a fair value of $40 per share.
Goodwin paid $25 to a broker for arranging the transaction. Goodwin paid $35 in
stock issuance costs. Corr’s equipment was actually worth $1,400 but its
buildings were only valued at $560.
Compute the consolidated liabilities at December 31, 20X1.
44. The financial statements for Goodwin, Inc., and Corr Company for the year
ended December 31, 20X1, prior to Goodwin’s acquisition business combination
transaction regarding Corr, follow (in thousands):
On December 31, 20X1, Goodwin issued $600 in debt and 30 shares of its $10
par value common stock to the owners of Corr to acquire all of the outstanding
shares of that company. Goodwin shares had a fair value of $40 per share.
Goodwin paid $25 to a broker for arranging the transaction. Goodwin paid $35 in
stock issuance costs. Corr’s equipment was actually worth $1,400 but its
buildings were only valued at $560.
Compute the consolidated retained earnings at December 31, 20X1.
45. On January 1, 20X1, the Moody Company entered into a transaction for
100% of the outstanding common stock of Osorio Company. To acquire these
shares, Moody issued $400 in long-term liabilities and 40 shares of common
stock having a par value of $1 per share but a fair value of $10 per share. Moody
paid $20 to lawyers, accountants, and brokers for assistance in bringing about
this acquisition. Another $15 was paid in connection with stock issuance costs.
Prior to these transactions, the balance sheets for the two companies were as
follows:
Note: Parentheses indicate a credit balance.
In Moody’s appraisal of Osorio, three assets were deemed to be undervalued on
the subsidiary’s books: Inventory by $10, Land by $40, and Buildings by $60.
What amount was recorded as the investment in Osorio?
46. On January 1, 20X1, the Moody Company entered into a transaction for
100% of the outstanding common stock of Osorio Company. To acquire these
shares, Moody issued $400 in long-term liabilities and 40 shares of common
stock having a par value of $1 per share but a fair value of $10 per share. Moody
paid $20 to lawyers, accountants, and brokers for assistance in bringing about
this acquisition. Another $15 was paid in connection with stock issuance costs.
Prior to these transactions, the balance sheets for the two companies were as
follows:
Note: Parentheses indicate a credit balance.
In Moody’s appraisal of Osorio, three assets were deemed to be undervalued on
the subsidiary’s books: Inventory by $10, Land by $40, and Buildings by $60.
What amount was recorded as goodwill arising from this acquisition?
47. On January 1, 20X1, the Moody Company entered into a transaction for
100% of the outstanding common stock of Osorio Company. To acquire these
shares, Moody issued $400 in long-term liabilities and 40 shares of common
stock having a par value of $1 per share but a fair value of $10 per share. Moody
paid $20 to lawyers, accountants, and brokers for assistance in bringing about
this acquisition. Another $15 was paid in connection with stock issuance costs.
Prior to these transactions, the balance sheets for the two companies were as
follows:
Note: Parentheses indicate a credit balance.
In Moody’s appraisal of Osorio, three assets were deemed to be undervalued on
the subsidiary’s books: Inventory by $10, Land by $40, and Buildings by $60.
Compute the amount of consolidated inventories at date of acquisition.
48. On January 1, 20X1, the Moody Company entered into a transaction for
100% of the outstanding common stock of Osorio Company. To acquire these
shares, Moody issued $400 in long-term liabilities and 40 shares of common
stock having a par value of $1 per share but a fair value of $10 per share. Moody
paid $20 to lawyers, accountants, and brokers for assistance in bringing about
this acquisition. Another $15 was paid in connection with stock issuance costs.
Prior to these transactions, the balance sheets for the two companies were as
follows:
Note: Parentheses indicate a credit balance.
In Moody’s appraisal of Osorio, three assets were deemed to be undervalued on
the subsidiary’s books: Inventory by $10, Land by $40, and Buildings by $60.
Compute the amount of consolidated buildings (net) at date of acquisition.