Please provide the breakdown of the numbers 46. Asset acquisition vs.
Автор: Jefferson Annis
Загружено: 2019-09-03
Просмотров: 6
Описание: Please provide the breakdown of the numbers 46. Asset acquisition vs. stock purchase (fair value equals book value) Assume an investor purchases the business of an investee. The fair value of the investee company is equal to its reported book value and the fair values of the individual net assets are equal to their reported book values. The investee company reports the following balance sheet on the acquisition date $ 3,360 $1,680 3,360 6,720 Cash... Accounts payable. . Aocrued liabilities Accounts receivable 5,040 Inventories Current assets 11,760 Current liabilities. . 8,400 Long-tem liabilities. Stockholders equity 6,720 PPE, net 13,440 16,800 Total liabilities & equity $28,560 $28,560 Total assets. . Parts a. and b. are independent of each other. Provide the journal entry if the investor pays cash and purchases the assets and assumes the liabilities of the investee company a. b Provide the journal entry if the investor pays cash and purchases all of the stock of the investees shareholders 47. Asset acquisition vs. stock purchase (fair value differs from book value) Assume the investor purchases the same net assets in Exercise 46., but now assume the cash purchase price is $25,200. The investor is willing to purchase the investees business for this amount because the fair value of the PPE is $23,520 and the fair value of a (previously unrecognized) customer list is $5,040 (the fair values of all other assets and liabilities are equal to their book values) Parts a. and b. are independent of each other. Provide the journal entry if the investor purchases the assets and assumes the labilities of the investee company a. Provide the journal entry if the investor purchases all of the stock of the investees shareholders b.
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