On December 31, 2011, Adam Company purchases 100% of the common stock of Sampson Company for $475,000
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Cash . . . . . . . . . . . . . . . . . . . . . . $ 40,000
Accounts receivable . . . . . . . . . . 30,000
Inventory . . . . . . . . . . . . . . . . . . . 140,000
Land. . . . . . . . . . . . . . . . . . . . . . . 45,000
Buildings and equipment. . . . . . . 225,000
Copyrights. . . . . . . . . . . . . . . . . . 25,000
Current liabilities . . . . . . . . . . . . . 65,000
Bonds payable . . . . . . . . . . . . . . 105,000
The following comparative balance sheets are prepared for the two companies immediately after the purchase:
Required
1. Prepare the value analysis schedule and the determination and distribution of excess schedule for the investment in Sampson Company.
2. Complete a consolidated worksheet for Adam Company and its subsidiary Sampson Company as of December 31, 2011.
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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Related Book For
Advanced Accounting
ISBN: 978-0538480284
11th edition
Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng
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