Condensed balance sheets for Concord Company and Oriole Company on January 1 , 2 0 2
Question:
Condensed balance sheets for Concord Company and Oriole Company on January are as
follows:
Concord : Oriole
Current assets $ : $
Plant and equipment net :
Total assets $ : $
Total liabilities $ : $
Common stock, $ par value :
Other contributed capital :
Retained earnings deficit :
TotaOn January the stockholders of Concord and Oriole agreed to a consolidation. Because
FASB requires that one party be recognized as the acquirer and the other as the acquiree, it was
agreed that Concord was acquiring Oriole. Concord agreed to issue shares of its $ par
stock to acquire all the net assets of Oriole at a time when the fair value of Concord's common
stock was $ per share.
On the date of consolidation, the fair values of Orioles current assets and liabilities were equal to
their book values. The fair value of plant and equipment was, however, $ Concord will
incur $ of direct acquisition costs and $ in stock issue costs.
Prepare the journal entries on the books of Concord to record the acquisition of Oriole