On the consolidation working paper at the date of acquisition, elimination E credits the investment account by

Question:

On the consolidation working paper at the date of acquisition, elimination E credits the investment account by
a. $ 2,400
b. $ 3,400 $
c. 5,000
d. $13,000
Use the following information to answer questions 5-8 below. All amounts are in thousands.
PR Company pays $10,000 in cash and issues stock with a fair value of $40,000 to acquire all of SX Corporation's stock. SX will be a subsidiary of PR. Balance sheets just prior to the acquisition are as follows:
On the consolidation working paper at the date of acquisition,

PR's consultants find these items that are not reported on SX's balance sheet
Potential
contracts with new customers $6,000
Advanced production technology 4,000
Future cost savings 2,000
Customer lists 1,000

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Advanced Accounting

ISBN: 978-1934319307

2nd edition

Authors: Susan S. Hamlen, Ronald J. Huefner, James A. Largay III

Question Posted: