Jean and John Inc had the following balance sheets on August 31, 2021. just before acquisition:...
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Jean and John Inc had the following balance sheets on August 31, 2021. just before acquisition: Cash Accounts Receivable Inventory Plant and Equipment (net) Goodwill Total Assets Accounts Payable Bonds Payable Common Shares Retained Earnings Total Liabilities and Equity Jean Inc. (carrying value) (carrying value) $1,200,000 $ 400,000 $ 240,000 $ 860,000 $10,000 $2,800,000 $1,500,000 $ 600.000 $ 500,000 $ 110,000 John Inc. $2,800,000 $300,000 $ 64,000 $ 80,000 $256,000 $ 20,000 $720,000 $300,000 $240,000 $ 60,000 $120,000 $720,000 Required: Calculate the following balances on the date of acquisition for the following accounts, that would appear on the consolidated Balance Sheet, given the following information below: On August 31 2021, Jean's date of acquisition, Jean Inc. purchased 90% of John Inc. for a cash consideration of $400,000. You were given the following fair values for John Inc. on the date of acquisition: Inventory - $60,000 Plant & Equipment - $350,000 Bonds Payable $210,000 Here are the accounts to calculate the balance for (given information above). Goodwill (18 marks) Non-controlling interest (3 marks). Common Shares (2 marks) . .. . • Cash (2 marks) Jean and John Inc had the following balance sheets on August 31, 2021. just before acquisition: Cash Accounts Receivable Inventory Plant and Equipment (net) Goodwill Total Assets Accounts Payable Bonds Payable Common Shares Retained Earnings Total Liabilities and Equity Jean Inc. (carrying value) (carrying value) $1,200,000 $ 400,000 $ 240,000 $ 860,000 $10,000 $2,800,000 $1,500,000 $ 600.000 $ 500,000 $ 110,000 John Inc. $2,800,000 $300,000 $ 64,000 $ 80,000 $256,000 $ 20,000 $720,000 $300,000 $240,000 $ 60,000 $120,000 $720,000 Required: Calculate the following balances on the date of acquisition for the following accounts, that would appear on the consolidated Balance Sheet, given the following information below: On August 31 2021, Jean's date of acquisition, Jean Inc. purchased 90% of John Inc. for a cash consideration of $400,000. You were given the following fair values for John Inc. on the date of acquisition: Inventory - $60,000 Plant & Equipment - $350,000 Bonds Payable $210,000 Here are the accounts to calculate the balance for (given information above). Goodwill (18 marks) Non-controlling interest (3 marks). Common Shares (2 marks) . .. . • Cash (2 marks)
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Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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