23 - Customer relationships 500,000 IPR&D 300,000...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
23. a. The fair value of the consideration includes Fair value of stock issued $150,000 Contingent performance obligation 30,000 Fair value of consideration transferred $1,530,000 b. Because of the acquisition method, the stock issue costs are reduced to the additional paid in capital. c. Due to the acquisition method, it is recorded by the direct costs for expenses. d. Par Value of the 20,000 shares issued is recorded as an increase of the $20,000 in the account for common stock. The fair value of $74 is the excess of the par value of $75-1, which will increase the additional paid in capital to $1,480,000. e. e. Fair value of consideration transferred $1,530,000 Receivables $ 80,000 Patented technology 700,000
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Customer relationships 500,000 IPR&D 300,000 Liabilities 1,180,000 (400,000) Goodwill $ 350,000 f. The expenses and the revenue of the subsidiary form of the prior period to the combination was omitted from the totals of the consolidated totals. The operational figures for the subsidiary was purchased after and were later applicable to the business combination. g. Common stock and Additional paid in capital accounts do not have an impact on the consolidated totals. h. Fair value of consideration transferred $1,030,000 Receivables $ 80,000 Patented technology 700,000 Customer relationships 500,000 IPR&D asset 300,000 Liabilities (400,000) Gain on bargain purchase 150,000 $ 1,180,000...
View Full Document

{[ snackBarMessage ]}

Page1 / 2

23 - Customer relationships 500,000 IPR&D 300,000...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online