Question: The condensed financial statements for OIL Inc and ERS Company

The condensed financial statements for OIL Inc. and ERS Company for the year ended December 31, Year 5, follow:
On December 31, Year 5, after the above figures were prepared, OIL issued $240,000 in debt and 12,000 new shares to the owners of ERS for 80% of the out standing shares of that company. OIL shares had a fair value of $40 per share.
OIL also paid $30,000 to a broker for arranging the transaction. In addition, OIL paid $32,000 in stock issuance costs. ERS's equipment was actually worth $690,000, but its patented technology was appraised at only $280,000.
What are the consolidated balances for the year ended/at December 31, Year 5, for the following accounts?
(a) Net income
(b) Retained earnings, 1/1/Year 5
(c) Equipment
(d) Patented technology
(e) Goodwill
(f) Liabilities
(g) Common shares
(h) Non-controlling interests

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  • CreatedJune 08, 2015
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