Q3/ On March 31, 2005, Pyre Corporation acquired for $8,200,000 cash all the outstanding common stock...

 

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Q3/ On March 31, 2005, Pyre Corporation acquired for $8,200,000 cash all the outstanding common stock of Stark Company when Stark's balance sheet showed net assets of $6,400,000. Out-of-pocket costs of the business combination may be disregarded. Stark's identifiable net assets had current fair values different from carrying amounts as follows: Carrying Amounts $10,000,000 $11,500,000 1,000,000 700,000 Long-term debt 6,000,000 5,600,000 Instruction:Prepare a working paper to compute the amount of goodwill to be displayed in the consolidated balance sheet of Pyre Corporation and subsidiary on March 31, 2005. Current fair values Plant assets Other assets Q3/ On March 31, 2005, Pyre Corporation acquired for $8,200,000 cash all the outstanding common stock of Stark Company when Stark's balance sheet showed net assets of $6,400,000. Out-of-pocket costs of the business combination may be disregarded. Stark's identifiable net assets had current fair values different from carrying amounts as follows: Carrying Amounts $10,000,000 $11,500,000 1,000,000 700,000 Long-term debt 6,000,000 5,600,000 Instruction:Prepare a working paper to compute the amount of goodwill to be displayed in the consolidated balance sheet of Pyre Corporation and subsidiary on March 31, 2005. Current fair values Plant assets Other assets

Answer rating: 100% (QA)

Acquisition When one company acquires the net assets of another company by p... View the full answer