Week 3 - Given Data P03-26: Mergaronite 12/31/2013 $600,000...

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Given Data P03-26: Mergaronite Hill 12/31/2013 12/31/2013 Revenues $600,000 $250,000 Cost of goods sold 280,000 100,000 Depreciation expense 120,000 50,000 Investment income not given NA Retained earnings, 1/1/13 900,000 600,000 Dividends paid 130,000 40,000 Current assets 200,000 690,000 Land 300,000 90,000 Buildings (net) 500,000 140,000 Equipment (net) 200,000 250,000 Liabilities 400,000 310,000 Common stock 300,000 40,000 Additional paid-in capital 50,000 160,000 Mergaronite's $10 par common stock issued 7,000 for acquisition of Hill - number of shares Fair market value of Mergaronite stock - per share $100 Hill's land undervalued by 20,000 Hill's buildings overvalued by 30,000 Hill's equipment undervalued by 60,000 Remaining life of buildings - years 10 Remaining life of equipment - years 5 Appraised value of Hill's customer list $100,000 Remaining life of Hill's customer list - years 20
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Student Name: Class: Problem 03-26 a. Fair Value Allocation and Annual Amortization Annual Life Excess Allocation (years) Amortizations Land $20,000 Buildings (30,000) 10 (3,000) Equipment 60,000 5 12,000 Customer list 100,000 20 5,000 Total $14,000 Correct! Account Name Balance Explanation Revenues 850,000 Revenue of parent and subsidiary are added together. Cost of goods sold 380,000 COGS of parent and subsidiary are added together. Depreciation expense
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Week 3 - Given Data P03-26: Mergaronite 12/31/2013 $600,000...

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