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Acadia Corporation

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Question;Acadia Corporation created Skinny Company as a wholly owned subsidiary by transferring assets and accounts payable to Skinny in exchange for its common stock. Skinny recorded the following entry when it received the assets and accounts payable:Required:a. What was Acadia?s book value of the total assets (not net assets) transferred to Skinny Company?b. What amount did Acadia report as its investment in Skinny after the transfer?c. What number of shares of $10 par value stock did Skinny issue to Acadia?d. What impact did the transfer of assets and accounts payable have on the amount reported by Acadia as total assets?e. What impact did the transfer of assets and accounts payable have on the amount that Acadia and the consolidated entity reported as shares outstanding?

 

Paper#39821 | Written in 18-Jul-2015

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