Question

The financial statements for CAP Inc. and SAP Company for the year ended December 31, Year 5, follow:
On December 31, Year 5, after the above figures were prepared, CAP issued $300,000 in debt and 15,000 new shares to the owners of SAP to purchase all of the outstanding shares of that company. CAP shares had a fair value of $40 per share.
CAP also paid $30,000 to a broker for arranging the transaction. In addition, CAP paid $40,000 in stock issuance costs. SAP’s equipment was actually worth $710,000 but its patented technology was valued at only $270,000.
Required:
What are the balances for following accounts on the on the Year 5 consolidated financial statements?
(a) Profit
(b) Retained earnings, 12/31/Year 5
(c) Equipment
(d) Patented technology
(e) Goodwill
(f) Ordinary shares
(g) Liabilities


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  • CreatedJune 08, 2015
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