solweek4assignments part1 upload

solweek4assignments part1 upload - no goodwill In...

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Fineline Smudge Consolidated Book Value Fair Value Book Value Fair Value Cash 200,000 200,000 50,000 50,000 100,000 The $150,000 paid in cash is reduced Other Assets 400,000 650,000 120,000 180,000 580,000 Total Debits 600,000 170,000 680,000 Current Liabilities 100,000 100,000 80,000 80,000 180,000 Common Stock 300,000 50,000 300,000 The common stock and retained earnings Retained Earnings 200,000 40,000 200,000 are not added as that is paid off Total Credits 600,000 170,000 680,000 The assets and liabilities are purchased Net Assets 150,000 Since the net Assets at Fair Value are $150,000 and cash paid is $150,000 there will be
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Unformatted text preview: no goodwill In acquistion, the company being acquired is valued at fair value and the company acquring remains at book value The consolidated balance sheet is Fineline Pencil Company and Subsidiary Consolidated Balance Sheet January 2, 20X3 Cash ($200,000 - $150,000 + $50,000) $100,000 Other Assets ($400,000 + $180,000) 580,000 Total Assets $680,000 Current Liabilities ($100,000 + $80,000) $180,000 Common Stock 300,000 Retained Earnings 200,000 Total Liabilities and Stockholders' Equity $680,000...
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