January 31, 2014, Phoenix, Inc. acquired all of the outstanding common stock of Spark Corporation for $400
Question:
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A review of the fair values of Spark's assets indicates that current assets are overvalued by $10 million, plant and equipment is undervalued by $200 million, and previously unreported brand names and trademarks have a fair value of $300 million.
Required
a. Prepare the entry Phoenix makes to record the acquisition of Spark.
b. Prepare a working paper to consolidate the balance sheets of Phoenix and Spark at January 31, 2014.
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...
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a Phoenix makes the following entry to record the acquisition amounts in millions Inv...View the full answer
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Related Book For 
Advanced Accounting
ISBN: 978-1934319307
2nd edition
Authors: Susan S. Hamlen, Ronald J. Huefner, James A. Largay III
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