Company S has no long-term marketable securities. Assume the following scenarios:

Case A

Assume that P Company paid $130,000 cash for 100% of the net assets of S Company.

Case B
Assume that P Company paid $110,000 cash for 100% of the net assets of S Company.

Case A
Assume that P Company paid $15,000 cash for 100% of the net assets of S Company.

Required:
Complete the following schedule by listing the amount that would be recorded on P’sbooks.

Transcribed Image Text:

S COMPANY Assets Current Assets Long-lived Assets LiabilitiesNet Assets $20,000 $80,000 120,000 $15,000 20,000 $85,000 130,000 Book Value Fair Value 30,000 S COMPANY Assets Current Assets Long-lived Assets Liabilties Net Assets $20,000 $80,000 90,000 $15,000 30,000 Book Value Fair Value $85,000 80,000 20,000 S COMPANY Assets Current Assets Long-lived Assets LiabilitiesNet Assets Book Value Fair Value $15,000 20,000 $85,000 40,000 $20,000 40,000 $80,000 20,000 lle lie