Ch 2 Q 2, 4, 5, 6, 8, 11
2. A statutory merger is created whenever two or more companies come together to form a business
combination and only one remains in existence as an identifiable entity. This arrangement is often
instituted by the acquisition of s
2, 3, 5, 7, 9, 12
a. The consolidated total for equipment is made up of the sum of Maguires book value,
Williams book value, and any unamortized excess acquisition-date fair value over book
value attributable to Williams equipment.
b. The entire amount
The company allocates service department costs by the step-down method in the
following order: Administration (number of employees), Janitorial (space occupied), and
Maintenance (hours of press time).
Required:Using the step-down method, allocate the