INTERCORPORATE ACQUISITIONS AND INVESTMENTS IN OTHER ENTITIES
ANSWERS TO QUESTIONS E1-2 Multiple-Choice Questions on Recording Business Combinations [AICPA Adapted]
(a) In 2004, the FASB issued SFAS No. 123(Revised), Share-Based Payment. Generally, the standard indicates that employee stock options be treated like all other types of compensation and that their value be included in financial statements as p
Cash (20,000 X $16). 320,000
Common Stock ($20,000 X $5) .
Paidin Capital in Excess of Par—Common.
Factory Building. 110,000
Preferred Stock ($4,000 X $100).
CHAPTER 1 INTERCORPORATE ACQUISITIONS AND INVESTMENTS IN OTHER ENTITIES P1-27 Journal Entries to Record a Business Combination Journal entries to record acquisition of TKK net assets under purchase treatment: (1) Deferred Merger Costs Cash Record pay