Business, 28.01.2020 19:44 TheCat250

Barstow company is contemplating the acquistion of the net assets of crown company for $875,000 cash. to complete the transaction, acquisition costs are $15,000. the balance sheet of crown company on the purchase date is as follows:

barstow company
balance sheet, december 31, 2015
assets liabilities and equity
current assets $80,000 liabilities $100,000
land $70,000 common stock ($10 par) $100,000
building $450,000 paid-in capital in excess of par $150,000
accumulated depreciation-building (200,000) retained earning $250,000
equipment $300,000
accumulated depreciation-equipment (100,000)
total assets $600,000 total liabilities and equity $600,000

the following fair values have been obtained for crown's identifiable assets and liabilities:

current assets $85,000
land $90,000
building $300,000
equipment $275,000
liabilities $102,000

1. record the acquisition of the net assets of crown company on barstow company's books.
2. record the sale of the net assets on the books of crown company.
3. record the acquisition of 100% of the common stock of crown company on barstow's books. crown company will remain a separate legal entity.

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 20:40

David consumes two things: gasoline (g) and bread (b). david's utility function is u(g, b) = 10g^0.25 b^0.75. use the lagrange technique to solve for david's optimal choices of gasoline and bread as a function of the price of gasoline, p_g, the price of bread, p_b, and his income m. with recent decrease in the price of gasoline (maybe due to external shock such as shale gas production) does david increase his consumption of gasoline? for david, how does partial differential g/partial differential p_g depend on his income m? that is, how does david's change in gasoline consumption due to an increase in the price of gasoline depend on his income level? to answer these questions, find the cross-partial derivative, |partial differential^2 g/partial differential m partial differential p_g.

Answers: 1

Answer

Business, 23.06.2019 14:20

Inflation is when money is paid for the same amount of goods and services than in a previous time period. the same amount less more none of the above

Answers: 1

Answer

Business, 23.06.2019 15:30

Bill is 31 years old, married, and lived with his spouse michelle from january 2018 to september 2018. bill paid all the cost of keeping up his home. he indicated that he is not legally separated and he and michelle agreed they will not a file a joint return. bill has an 8-year-old son, daniel, who qualifies as bill's dependent. bill worked as a clerk and his wages are $20,000 for 2018. his income tax before credits is $500. in 2018, he took a computer class at the local university to improve his job skills. bill has a receipt showing he paid $1,200 for tuition. he paid for all his educational expenses and did not receive any assistance or reimbursement. bill does not have enough deductions to itemize. bill, michelle, and daniel are u.s. citizens with valid social security numbers. 8. bill does not qualify to claim which of the following: a. head of household b. education benefit c. earned income credit d. all of the above

Answers: 3

Answer

Business, 24.06.2019 08:30

Match each college credit option with its correct description

Answers: 3

Answer

You know the right answer?

Barstow company is contemplating the acquistion of the net assets of crown company for $875,000 cash...

Questions