Advanced Accounting - Chapter 2 - Problem 14

Advanced Accounting - Chapter 2 - Problem 14 - Assign to...

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Problem 14 Purchase Price 500,000 (10,000 * 50) Common Stock 10,000 APIC - C/S 190,000 Retained Earnings 140,000 340,000 80% 272,000 Excess cost over book value 228,000 Zone Analysis Priority Total % Ownership Cummulative Total Accounts Receivable 50,000 Inventory 150,000 Current Liabilities (90,000) Bonds Payable (210,000) (100,000) 80% (80,000) Non-Priority Equipment 200,000 Land 200,000 Buildings 400,000 Patents 150,000 Computer Software 50,000 1,000,000 80% 720,000 Purchase Price 500,000
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Unformatted text preview: Assign to priority accounts (80,000) Assign to non-priority accounts (allocated) 580,000 Allocation Schedule Fair Value Percent Assign Total Allocated Value 80% Book Value Adjustment Equipment 200,000 20% 580,000 116,000 72,000 44,000 Land 200,000 20% 580,000 116,000 80,000 36,000 Buildings 400,000 40% 580,000 232,000 160,000 72,000 Patent 150,000 15% 580,000 87,000 8,000 79,000 Computer Software 50,000 5% 580,000 29,000 - 29,000...
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