Part ii on armstrong company paid 3500000 to acquire

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Part II On May 31, 2011, Armstrong Company paid $3,500,000 to acquire all of the common stock of Hall Corporation, which became a division of Armstrong. Hall reported the following balance sheet at the time of the acquisition: Current assets $ 900,000 Current liabilities $ 600,000 Noncurrent assets 2,700,000 Long-term liabilities 500,000 Stockholders’ equity 2,500,000 Total liabilities and Total assets $3,600,000 stockholders’ equity $3,600,000 It was determined at the date of the purchase that the fair value of the identifiable net assets of Hall was $2,900,000.
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At January 1, 2012, Hall reports the following balance sheet information: Current assets $800,000 Fixed assets 1,400,000 Patent and goodwill 1,000,000 ,00 Current liabilities (700,000) Long-term liabilities (500,000 ) Net assets $2,000,000 It is determined that the fair market value of the Hall division is $2,050,000. The recorded amount for Hall’s net assets (excluding goodwill) is the same as fair value, except for property, plant, and equipment, which has a fair value of $300,000 above the carrying value.
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