On Dec 31,2018 (A) paid JD25000 and issued 30000 JD1 par value common stock, fair value...

  

  

Transcribed Image Text:

On Dec 31,2018 (A) paid JD25000 and issued 30000 JD1 par value common stock, fair value JD2 for 90% of the net assets of (B) Out-of-pockets costs of the business combination paid by (A) are consisted of legal and accounting fees JD5000 and JD10000 for issuance common stocks Stockholders equity of (A) and (B) at the date of acquisition are as follows Explanations Common stock Paid-in-capital Retained earnings (A) 100000 35000 30000 Explanations Net income Dividends You have given the following 1. (A) and (B) reported the following at the end of 2019: The value of carrying assets and liabilities of (B) at acquation date equal to their fair values except for inventory that decreased by 8000, (B) 80000 (A) 50000 20000 30000 20000 (B) 30000 15000 Activate Windows and has 2. One-fourth of the inventory is sold during the year. 1. The cost of investment in (B) is: a. JD25000 b. JD85000 c. JD55000 d. JD60000 2.The balance of paid-in-capital in (A) subsequent to the date of the acquisition: a. JD35000 b. JD65000 c. JD55000 d. JD56000 3. Goodwill of acquisition will be a. JD(42800) b. JD24800 c. JD(24800) d. JD42800 V 4. (A s) share of (B s) net income will be a. JD28800. b. JD27000 c. JD25200 d. JD25000 5. non-controlling interest share of (B s) net income: a. JD2800 b. JD3200 c. JD3000 d. JD2300 On Dec 31,2018 (A) paid JD25000 and issued 30000 JD1 par value common stock, fair value JD2 for 90% of the net assets of (B) Out-of-pockets costs of the business combination paid by (A) are consisted of legal and accounting fees JD5000 and JD10000 for issuance common stocks Stockholders equity of (A) and (B) at the date of acquisition are as follows Explanations Common stock Paid-in-capital Retained earnings (A) 100000 35000 30000 Explanations Net income Dividends You have given the following 1. (A) and (B) reported the following at the end of 2019: The value of carrying assets and liabilities of (B) at acquation date equal to their fair values except for inventory that decreased by 8000, (B) 80000 (A) 50000 20000 30000 20000 (B) 30000 15000 Activate Windows and has 2. One-fourth of the inventory is sold during the year. 1. The cost of investment in (B) is: a. JD25000 b. JD85000 c. JD55000 d. JD60000 2.The balance of paid-in-capital in (A) subsequent to the date of the acquisition: a. JD35000 b. JD65000 c. JD55000 d. JD56000 3. Goodwill of acquisition will be a. JD(42800) b. JD24800 c. JD(24800) d. JD42800 V 4. (A s) share of (B s) net income will be a. JD28800. b. JD27000 c. JD25200 d. JD25000 5. non-controlling interest share of (B s) net income: a. JD2800 b. JD3200 c. JD3000 d. JD2300

Answer rating: 100% (QA)

Answer 1 O ption B is correct JD85000 Inventory refers to all the items goods merchandise and materi... View the full answer