On the Date of Purchase On January 1, 2019, Parent acquired 100% of the Common Stock of
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On the Date of Purchase
On January 1, 2019, Parent acquired 100% of the Common Stock of Sub. The shares were acquired for 150 shares of Parent’s Common stock with a market value of $6 per share (Par value $1) plus additional cash of $1,000. The book value of Sub’s net assets on that date was $1,440.
In addition to the assets listed on the balance sheet of Sub, Parent recognizes the following on the date of acquisition:
- Unrecorded trademark (amortized over 10 years) $ 80
- Unrecorded patent (amortized over 5 years) 100
- Increase in the fair value of land 35
- Increase in the fair value of equipment (remaining life 7 years) 70
- Increase in the fair value of buildings (remaining life 10 years) 90
- Total adjustments $370
Related Book For
Fundamentals of Advanced Accounting
ISBN: 978-0077862237
6th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
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