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Acadia Corporation created Skinny Company as a wholly owned subsidiary by transferring assets and accounts payable to Skinny in exchange...

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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;DebitCredit;Cash5,000;Accounts Receivable 20,000;Inventory30,000;Land5,000;Buildings90,000;Equipment40,000;Accounts Payable17,000;Accumulated Depreciation- Buidlings31,000;Accumulated Depreciation - Equipment15,000;Common Stock50,000;Additional Paid in Capital77,0000;Required;What was Acadia?s book value of the total assets (not net assets) transferred to Skinny Company?;What amount did Acadia report as its investment in Skinny after the transfer?;What number of shares of $10 par value stock did Skinny issue to Acadia?;What impact did the transfer of assets and accounts payable have on the amount reported by Acadia as total assets?;What impact did the transfer of assets and accounts payable have on the amount that Acadia and the consolid

 

Paper#76444 | Written in 18-Jul-2015

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