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79. Presented below are the financial balances for the Atwood Company and
the Franz Company as of December 31, 2010, immediately before Atwood
acquired Franz. Also included are the fair values for Franz Company's net assets
at that date.
Note: Parenthesis indicate a credit balance
Assume a business combination took place at December 31, 2010. Atwood
issued 50 shares of its common stock with a fair value of $35 per share for all of
the outstanding common shares of Franz. Stock issuance costs of $15 (in
thousands) and direct costs of $10 (in thousands) were paid to effect this
acquisition transaction. To settle a difference of opinion regarding Franz's fair
value, Atwood promises to pay an additional $5.2 (in thousands) to the former
owners if Franz's earnings exceed a certain sum during the next year. Given the
probability of the required contingency payment and utilizing a 4% discount rate,
the expected present value of the contingency is $5 (in thousands).
Compute consolidated expenses at date of acquisition.
80. Presented below are the financial balances for the Atwood Company and
the Franz Company as of December 31, 2010, immediately before Atwood
acquired Franz. Also included are the fair values for Franz Company's net assets
at that date.
Note: Parenthesis indicate a credit balance
Assume a business combination took place at December 31, 2010. Atwood
issued 50 shares of its common stock with a fair value of $35 per share for all of
the outstanding common shares of Franz. Stock issuance costs of $15 (in
thousands) and direct costs of $10 (in thousands) were paid to effect this
acquisition transaction. To settle a difference of opinion regarding Franz's fair
value, Atwood promises to pay an additional $5.2 (in thousands) to the former
owners if Franz's earnings exceed a certain sum during the next year. Given the
probability of the required contingency payment and utilizing a 4% discount rate,
the expected present value of the contingency is $5 (in thousands).
Compute the consolidated cash upon completion of the acquisition.
81. Flynn acquires 100 percent of the outstanding voting shares of Macek
Company on January 1, 20X1. To obtain these shares, Flynn pays $400 cash (in
thousands) and issues 10,000 shares of $20 par value common stock on this
date. Flynn's stock had a fair value of $36 per share on that date. Flynn also pays
$15 (in thousands) to a local investment firm for arranging the acquisition. An
additional $10 (in thousands) was paid by Flynn in stock issuance costs.
The book values for both Flynn and Macek as of January 1, 20X1 follow. The fair
value of each of Flynn and Macek accounts is also included. In addition, Macek
holds a fully amortized trademark that still retains a $40 (in thousands) value.
The figures below are in thousands
. Any related question also is in thousands.
By how much will Flynn's additional paid-in capital increase as a result of this
acquisition?
82. Flynn acquires 100 percent of the outstanding voting shares of Macek
Company on January 1, 20X1. To obtain these shares, Flynn pays $400 cash (in
thousands) and issues 10,000 shares of $20 par value common stock on this
date. Flynn's stock had a fair value of $36 per share on that date. Flynn also pays
$15 (in thousands) to a local investment firm for arranging the acquisition. An
additional $10 (in thousands) was paid by Flynn in stock issuance costs.
The book values for both Flynn and Macek as of January 1, 20X1 follow. The fair
value of each of Flynn and Macek accounts is also included. In addition, Macek
holds a fully amortized trademark that still retains a $40 (in thousands) value.
The figures below are in thousands
. Any related question also is in thousands.
What amount will be reported for goodwill as a result of this acquisition?
83. Flynn acquires 100 percent of the outstanding voting shares of Macek
Company on January 1, 20X1. To obtain these shares, Flynn pays $400 cash (in
thousands) and issues 10,000 shares of $20 par value common stock on this
date. Flynn's stock had a fair value of $36 per share on that date. Flynn also pays
$15 (in thousands) to a local investment firm for arranging the acquisition. An
additional $10 (in thousands) was paid by Flynn in stock issuance costs.
The book values for both Flynn and Macek as of January 1, 20X1 follow. The fair
value of each of Flynn and Macek accounts is also included. In addition, Macek
holds a fully amortized trademark that still retains a $40 (in thousands) value.
The figures below are in thousands
. Any related question also is in thousands.
What amount will be reported for consolidated receivables?
84. Flynn acquires 100 percent of the outstanding voting shares of Macek
Company on January 1, 20X1. To obtain these shares, Flynn pays $400 cash (in
thousands) and issues 10,000 shares of $20 par value common stock on this
date. Flynn's stock had a fair value of $36 per share on that date. Flynn also pays
$15 (in thousands) to a local investment firm for arranging the acquisition. An
additional $10 (in thousands) was paid by Flynn in stock issuance costs.
The book values for both Flynn and Macek as of January 1, 20X1 follow. The fair
value of each of Flynn and Macek accounts is also included. In addition, Macek
holds a fully amortized trademark that still retains a $40 (in thousands) value.
The figures below are in thousands
. Any related question also is in thousands.
What amount will be reported for consolidated inventory?
85. Flynn acquires 100 percent of the outstanding voting shares of Macek
Company on January 1, 20X1. To obtain these shares, Flynn pays $400 cash (in
thousands) and issues 10,000 shares of $20 par value common stock on this
date. Flynn's stock had a fair value of $36 per share on that date. Flynn also pays
$15 (in thousands) to a local investment firm for arranging the acquisition. An
additional $10 (in thousands) was paid by Flynn in stock issuance costs.
The book values for both Flynn and Macek as of January 1, 20X1 follow. The fair
value of each of Flynn and Macek accounts is also included. In addition, Macek
holds a fully amortized trademark that still retains a $40 (in thousands) value.
The figures below are in thousands
. Any related question also is in thousands.
What amount will be reported for consolidated buildings (net)?
86. Flynn acquires 100 percent of the outstanding voting shares of Macek
Company on January 1, 20X1. To obtain these shares, Flynn pays $400 cash (in
thousands) and issues 10,000 shares of $20 par value common stock on this
date. Flynn's stock had a fair value of $36 per share on that date. Flynn also pays
$15 (in thousands) to a local investment firm for arranging the acquisition. An
additional $10 (in thousands) was paid by Flynn in stock issuance costs.
The book values for both Flynn and Macek as of January 1, 20X1 follow. The fair
value of each of Flynn and Macek accounts is also included. In addition, Macek
holds a fully amortized trademark that still retains a $40 (in thousands) value.
The figures below are in thousands
. Any related question also is in thousands.
What amount will be reported for consolidated equipment (net)?
87. Flynn acquires 100 percent of the outstanding voting shares of Macek
Company on January 1, 20X1. To obtain these shares, Flynn pays $400 cash (in
thousands) and issues 10,000 shares of $20 par value common stock on this
date. Flynn's stock had a fair value of $36 per share on that date. Flynn also pays
$15 (in thousands) to a local investment firm for arranging the acquisition. An
additional $10 (in thousands) was paid by Flynn in stock issuance costs.
The book values for both Flynn and Macek as of January 1, 20X1 follow. The fair
value of each of Flynn and Macek accounts is also included. In addition, Macek
holds a fully amortized trademark that still retains a $40 (in thousands) value.
The figures below are in thousands
. Any related question also is in thousands.
What amount will be reported for consolidated long-term liabilities?
88. Flynn acquires 100 percent of the outstanding voting shares of Macek
Company on January 1, 20X1. To obtain these shares, Flynn pays $400 cash (in
thousands) and issues 10,000 shares of $20 par value common stock on this
date. Flynn's stock had a fair value of $36 per share on that date. Flynn also pays
$15 (in thousands) to a local investment firm for arranging the acquisition. An
additional $10 (in thousands) was paid by Flynn in stock issuance costs.
The book values for both Flynn and Macek as of January 1, 20X1 follow. The fair
value of each of Flynn and Macek accounts is also included. In addition, Macek
holds a fully amortized trademark that still retains a $40 (in thousands) value.
The figures below are in thousands
. Any related question also is in thousands.
What amount will be reported for consolidated common stock?
