Question

On June 10, 2014, Penn Company acquired all 8,000 outstanding shares of Soni Company for $ 12 cash per share. Immediately after the acquisition, the statements of financial position reflected below were available:
Required:
1. Prepare the journal entry that Penn Company made to record the acquisition.
2. Analyze the acquisition to determine the amount of goodwill purchased.
3. Should Soni Company’s assets be included on the consolidated statement of financial position at their carrying amounts or at their fair value? Explain.
4. Prepare a consolidated statement of financial position immediately after acquisition.


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  • CreatedAugust 04, 2015
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