Question: Smyth Company is acquired by Radar Corporation on July 1

Smyth Company is acquired by Radar Corporation on July 1, 2011. Radar exchanges 60,000 shares of its $5 par stock, with a fair value of $20 per share, for the net assets of Smyth Company.
Radar incurs the following costs as a result of this transaction:
Acquisition costs ................. $25,000
Stock registration and issuance costs ......... 10,000
Total costs ................... $35,000
The balance sheet of Smyth Company, on the day of the acquisition, is as follows:
The appraised fair values as of July 1, 2011, is as follows:
Inventory .................. $250,000
Equipment ................. 220,000
Land.................... 180,000
Buildings .................. 300,000
Current liabilities .............. 80,000
Bonds payable ............... 410,000
Record the acquisition of Smyth Company on the books of Radar Corporation.



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  • CreatedApril 10, 2015
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