Complete a value analysis and D&D schedule for the date of acquisition. On January 1, 2021, Alpha
Fantastic news! We've Found the answer you've been seeking!
Question:
Complete a value analysis and D&D schedule for the date of acquisition.
Transcribed Image Text:
On January 1, 2021, Alpha Company acquired an 80% interest in Bravo Company. Alpha paid $250,000 cash to make this acquisition. The financial information for both companies immediately prior to the investment is presented below: Cash Accts. Rec Inventory PPE Intangibles Total Assets Accts Pay Notes Pay Total Liab Alpha Book $325,000 $110,000 $85,000 $300,000 $0 $820,000 $150,000 $200,000 $350,000 Bravo Book $50,000 $65,000 $40,000 $150,000 $0 $305,000 $50,000 $150,000 $200,000 Bravo Fair $50,000 $65,000 $40,000 $200,000 (5 year life) $15,000 (15 year life) $370,000 $50,000 $150,000 $200,000 On January 1, 2021, Alpha Company acquired an 80% interest in Bravo Company. Alpha paid $250,000 cash to make this acquisition. The financial information for both companies immediately prior to the investment is presented below: Cash Accts. Rec Inventory PPE Intangibles Total Assets Accts Pay Notes Pay Total Liab Alpha Book $325,000 $110,000 $85,000 $300,000 $0 $820,000 $150,000 $200,000 $350,000 Bravo Book $50,000 $65,000 $40,000 $150,000 $0 $305,000 $50,000 $150,000 $200,000 Bravo Fair $50,000 $65,000 $40,000 $200,000 (5 year life) $15,000 (15 year life) $370,000 $50,000 $150,000 $200,000
Expert Answer:
Answer rating: 100% (QA)
Solution 1 Value Analysis In value analysis we compare the value analysis we compare the value of bu... View the full answer
Related Book For
Auditing A Risk Based Approach to Conducting a Quality Audit
ISBN: 978-1305080577
10th edition
Authors: Karla Johnstone, Audrey Gramling, Larry E. Rittenberg
Posted Date:
Students also viewed these accounting questions
-
Complete a value analysis for the following products: a. Paper clip b. Textbook
-
Consolidation at the date of acquisition (purchase price equals book value). A parent company acquires its subsidiary by exchanging 30,000 shares of its common stock with the fair value on the...
-
Prepare a consolidated balance sheet at the date of acquisition under the three theories, and respond to the questions asked by management. On December 31, Year 7, Maple Company issued preferred...
-
The bank portion of the bank reconciliation for Langer Company at November 30, 2017, was as follows. The bank statement contained two memoranda: 1. A credit of $5,285 for the collection of a $5,140...
-
Merging, downsizing, and reengineering all can radically change the structure of an organization. Choose one of these changes, and describe HRM's role in making the change succeed. If possible, apply...
-
Wolfe Computer is a U.S. company that manufactures portable personal computers. Many of the components for the computer are purchased abroad, and the finished product is sold in foreign countries as...
-
Banks offer many savings options to teenagers. A teen can open a savings/passbook account or a CD (certificate of deposit).
-
The financial results for the past two years for Ornamental Iron, a division of Iron Foundry Company, follow: Required 1. Compute the division's profit margin, asset turnover, and return on...
-
In this assignment, you estimate the weighted average cost of capital (WACC) for Microsoft, Campbell Soup and Merck. Assume their before-tax costs of debt are (in the same order): 2.2%, 3%, and 2.5%....
-
Glen Pool Club, Inc., has an installment loan outstanding with a current balance of $150.000. The company makes monthly installments of $1,543, which include interest computed at an annual rate of 6...
-
The stresses at a point in a bar are o, N/mm (tensile) and o N/mm (compressive) as shown in Figure 1. (a) Determine the normal, tangential and resultant stress in magnitude and direction on a plane...
-
Considerable amounts of time and effort have been devoted to the development of a conceptual framework for accounting, so far without success. To what extent would the auditors independence be...
-
Describe the procedures which would have to be undertaken by the directors of a company who wished to appoint an auditor to replace the present holder of the post. Assume that the auditor does not...
-
How can the internal auditor be sure that activities which are especially subject to manipulation will be reviewed during the year?
-
In deciding whether to drop its electronics product line, Best Buy's managers would consider: a. The revenues it would lose from dropping the product line b. The costs it could save by dropping the...
-
In making short-term special decisions, you should: a. Separate variable from fixed costs b. Focus on total costs c. Use a conventional income statement approach d. Discount cash flows to their...
-
Inventory financing Raymond Manufacturing faces a liquidity crisisit needs a loan of $78,000 for 1 month. Having no source of additional unsecured borrowing, the firm must find a secured short-term...
-
Suppose the government bond described in problem 1 above is held for five years and then the savings institution acquiring the bond decides to sell it at a price of $940. Can you figure out the...
-
Read about the massive fraud committed by Russell Wasendorf Sr. at PFG that is described in Problem 10-70. Use appropriate resources to document the latest developments in the case against Wasendorf....
-
Companies can improve internal control effectiveness by implementing effective ongoing monitoring of their internal control processes. Identify ongoing monitoring procedures that an organization...
-
KPMG LLP served as the external auditor for some of the largest subprime mortgage lenders in the U.S. leading up to and during the housing market crisis of the mid to late-2000s. The audits of two of...
-
48 Use divisibility rules to determine if each of the following is divisible by 3.
-
24 Use divisibility rules to determine if each of the following is divisible by 2 .
-
Construct a truth table or Venn diagram to prove whether the following argument is valid. If the argument is valid, determine whether it is sound. If John Mayer played MTV unplugged, then some...
Study smarter with the SolutionInn App