Question: Libra Company is purchasing 100 of the outstanding stock of

Libra Company is purchasing 100% of the outstanding stock of Genall Company for $700,000. Genall has the following balance sheet on the date of acquisition:
Appraisals indicate that the following fair values for the assets and liabilities should be acknowledged:
Accounts receivable . . . . . . . . . . . . . . . $300,000
Inventory . . . . . . . . . . . . . . . . . . . . . . . . 215,000
Property, plant, and equipment. . . . . . . 700,000
Computer software . . . . . . . . . . . . . . . . 130,000
Current liabilities . . . . . . . . . . . . . . . . . . 250,000
Bonds payable . . . . . . . . . . . . . . . . . . . 210,000
1. Prepare the value analysis schedule and the determination and distribution of excess schedule.
2. Prepare the elimination entries that would be made on a consolidated worksheet prepared on the date of purchase.

View Solution:


Sale on SolutionInn
Sales10
Views278
Comments
  • CreatedApril 10, 2015
  • Files Included
Post your question
5000