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Unformatted text preview: 140,000 ** Patent registration costs belonged to Prong and would therefore not be re-valued as part of the transaction since Prong is the acquirer. The transaction is essentially accounted for as a purchase of assets. The assets of Horn are recognized at fair value and the excess over the fair value of shares issued represents goodwill. Pronghorn Corporation Statement of Financial Position September 1, Year 5 Plant and equipment (430,000 + 280,000) 710,000 Other assets (41,000 + 20,000) 61,000 Goodwill 140,000 Current assets (135,000 + 170,000) 305,000 1,216,000 Common shares* (70,000 + 420,000) 490,000 Retained earnings 260,000 Long-term debt (180,000 + 160,000) 340,000 Current liabilities (96,000 + 30,000) 126,000 1,216,000 * 130,000 shares outstanding....
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This note was uploaded on 10/23/2011 for the course BUS 3600 taught by Professor Akashrattan during the Spring '11 term at Langara.
- Spring '11