Bancroft - Student Name: Misty Bancroft Class:...

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Student Name: Misty Bancroft Class: ACC431-50375-1109 Problem 02-19 MARSHALL COMPANY Part a. Marshall and Tucker Consolidated Balances Marshall's acquisition of Tucker represents a bargain purchase because the fair value of the net assets acquired exceeds the fair value of the consideration transaction as follows: Fair value of consideration transferred $400,000 Fair value of net assets acquired 515,000 Gain on bargain purchase $115,000 Correct! Record 3 transactions that occurred to create the business combination: MARSHALL COMPANY General Journal Account Debit Credit Investment in Tucker 515,000 «- Correct! Common stock 20,000 Additional paid-in capital 180,000 XXXXX 200,000 XXXXX 115,000 (To record liabilities and stock issued for Tucker acquisition at fair value) Combination expenses 30,000 «- Correct! Cash 30,000 (To record payment of combination fees) Additional paid-in capital 12,000 «- Correct! Cash 12,000 (To record payment of stock issuance costs) Marshall's trial balance is adjusted for the transactions (as shown in the worksheet that follows). Consideration transferred at fair value $400,000 Book value (assets minus liabilities 460,000 or stockholders' equity) Book value in excess of consideration 60,000 Allocation to specific accounts based on fair value: Inventory 5,000 Land 20,000 Buildings 30,000 Bargain purchase (fair market value XXXXX in excess of purchase price) Try again!
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Student Name: Misty Bancroft Class: ACC431-50375-1109 Problem 02-19 Account Name Balance Explanation Cash XXXXX XXXXX Receivables XXXXX XXXXX Inventory XXXXX XXXXX Land XXXXX XXXXX Buildings XXXXX XXXXX Equipment XXXXX XXXXX Total Assets XXXXX XXXXX Accounts Payable XXXXX XXXXX Long-term Liabilities XXXXX XXXXX Common Stock XXXXX XXXXX Additional Paid-In Capital XXXXX XXXXX Retained Earnings XXXXX XXXXX XXXXX XXXXX
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This note was uploaded on 09/28/2011 for the course ACC 431 taught by Professor Talbert during the Spring '08 term at National.

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Bancroft - Student Name: Misty Bancroft Class:...

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