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Question;6.;Poplar Corp. acquires the net assets of Sapling;Company, which has the following balance sheet;Accounts;Receivable;$ 50,000;Inventory;80,000;Equipment;Net;50,000;Land;Building, Net;120,000;Total;Assets;$300,000;========;Bonds Payable;$;90,000;Common;Stock;100,000;Retained;Earnings;110,000;Total;Liabilities and;$300,000;Stockholders;Equity;========;Fair values on the date of acquisition;Inventory;$100,000;Equipment;30,000;Land;Building;180,000;Customer;List;30,000;Bonds Payable;100,000;Direct acquisition costs: $10,000;If Poplar;paid $300,000 what journal entries would be recorded by both Poplar Corp. and;Sapling Company?;7.;Diamond acquired Heart's net assets. At the time of;the acquisition Heart's Balance sheet was as follows;Accounts;Receivable;$130,000;Inventory;70,000;Equipment;Net;50,000;Building;Net;250,000;Land;Building, Net;100,000;Total;Assets;$600,000;========;Bonds Payable;$100,000;Common;Stock;50,000;Retained;Earnings;450,000;Total;Liabilities and;$600,000;Stockholders;Equity;========;Fair values on the date of acquisition;Inventory;$100,000;Equipment;30,000;Building;350,000;Land;120,000;Brand;name copyright;50,000;Bonds payable;120,000;Direct acquisition costs: $5,000;Required;Record the;entry for the purchase of the net assets of Heart by Diamond at the following;Cash prices;a.;$700,000;b.;$300,000;c.;$100,000;1-15;Chapter;1;8.;Marquette Instruments Company acquired all the;assets and assumed all the liabilities of the Nelson Company on July 1, 20X1.;The fiscal year for both Marquette and Nelson ends on December 31. On the date;of acquisition, Nelson Company had the following trial balance;Accounts;receivable........................;$ 60,000;Inventory..................................;70,000;Machinery..................................;300,000;$100,000;Accumulated depreciation;machinery........;Notes;payable..............................;80,000;Sales......................................;120,000;210,000;Cost of goods;sold.........................;Operating;expenses.........................;70,000;Depreciation expense......................;15,000;10,000;Common stock, $1;par.......................;Paid-in capital in excess of;par...........;70,000;Retained earnings..........................;165,000...................................Totals;$635,000;$635,000;========;========;Marquette;issued 10,000 of its $5 par value shares for the outstanding shares of the;Nelson Company and paid $10,000 in direct acquisition costs. The fair value of;its shares was $40 per share. On the acquisition date, the inventory had a fair;value of $80,000 (sold by December 31), and the machinery had a fair value of;$400,000 with an estimated 8-year remaining life. Any value associated with;intangible assets arising from the business combination are associated with a;patent that will be amortized over 10 years.;The;following operating results were reported by the two resulting divisions:......................;Marquette;Nelson;Sales;January 1-December 31;July 1-December 31;$450,000;$300,000;Cost of goods sold.........;230,000;160,000;Operating expenses.........;120,000;80,000;Depreciation expense.......;40,000;15,000;The results;for Nelson are based on book values and do not consider adjustments resulting;from the business combination.;Required;Prepare an income statement for the Marquette;Instruments Company.;1-17;9.;On January 1, July 1, and December 31, 20X5, a;condensed trial balance for Nelson Company showed the following debits and;(credits):...................;Current Assets;01/01/X5;06/30/X5;12/31/X5;$;200,000;$ 260,000;$ 340,000;Plant and Equipment;(net)........;500,000;510,000;510,000;Current;Liabilities..............;(50,000);(70,000);(60,000);Long-Term;Debt...................;(100,000);(100,000);(100,000);Common;Stock.....................;(150,000);(150,000);(150,000);Other Paid-in;Capital............;(100,000);(100,000);(100,000);Retained Earnings, January;1.....;(300,000);(300,000);(300,000);Dividends Declared..............;(400,000);10,000;Revenues.........................;(900,000);Expenses.........................;350,000;750,000;Nelson Company's books were NOT closed on;June 30, 20X5.;For all of;20X5, Systems? revenues and expenses were $1,500,000 and $1,200,000;respectively.;1-18;Chapter 1;Required;Assume;that, on July 1, 20X5, Systems Corporation purchased the net assets of Nelson;Company for $750,000 in cash. On this date, the fair values for certain net;assets were;Current Assets.....................................;$280,000;Plant and;Equipment................................;600,000;On July 1, 20X1, the Plant;and Equipment had a remaining life of;10 years.;(1);Record the entry on Systems? books for the July 1;20X5 purchase of Nelson.;(2);Compute the amount of net income which will be;reported for 20X5.;10.;Mans Company is about to purchase the net assets of;Eagle Incorporated, which has the following balance sheet;Assets;Accounts receivable........................;$;60,000;Inventory..................................;$ 90,000;100,000;Equipment.................................;40,000;Accumulated depreciation..................;(50,000);Land and buildings.........................;$;300,000;200,000;Accumulated;depreciation...................;(100,000);Goodwill...................................;60,000.............................Totalassets;$460,000;========;Liabilities;and Stockholders' Equity;Bonds payable..............................;$;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;Direct acquisition costs were $20,000.;Required;Record the;entry for the purchase of the net assets of Eagle by Mans at the following cash;prices;a. $450,000;b. $310,000;c. $80,000;1-20;Chapter 1

 

Paper#44346 | Written in 18-Jul-2015

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