Question

Astor Corporation’s balance sheet at January 1, 20X7, reflected the following balances:


Phel Corporation, which had just entered into an active acquisition program, acquired 100 percent of Astor’s common stock on January 2, 20X7, for $576,000. A careful review of the fair value of Astor’s assets and liabilities indicated the following:


Assume the book values of Phel’s Inventory, Land, and Buildings and Equipment accounts are $300,000, $85,000, and $1,200,000, respectively.

Required
Compute the appropriate amount to be included in the consolidated balance sheet immediately following the acquisition for each of the following items:
a. Inventory.
b. Land.
c. Buildings and Equipment (net).
d. Goodwill.
e. Investment in AstorCorporation.


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  • CreatedMay 23, 2014
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