Question: July 1 2016 Raabe Company exchanged 18 000 of its 40

July 1, 2016, Raabe Company exchanged 18,000 of its $40 fair value ($1 par value) shares for all the outstanding shares of Dalke Company. Raabe paid acquisition costs of $40,000. The two companies had the following balance sheets on July 1, 2016:
The following fair values applied to Dalke’s assets:
Other current assets. . . . . . . . . . . $ 70,000
Inventory . . . . . . . . . . . . . . . . . . . 80,000
Land. . . . . . . . . . . . . . . . . . . . . . . 90,000
Building. . . . . . . . . . . . . . . . . . . . 150,000
Equipment . . . . . . . . . . . . . . . . . . 75,000
Required
1. Record the investment in Dalke Company and any other entry necessitated by the purchase.
2. Prepare the value analysis and the determination and distribution of excess schedule.
3. Prepare a consolidated balance sheet for July 1, 2016, immediately subsequent to the purchase.

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  • CreatedApril 10, 2015
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