On January 1, Year 6, Green Company acquired 100 percent of the outstanding common shares of...
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On January 1, Year 6, Green Company acquired 100 percent of the outstanding common shares of Blue Inc. by issuing 10.000 common shares. The carrying amounts and the fair values of both companies immediately before the acquisition were as follows: Green Company Carrying Blue Inc. Carrying Fair values $2,400,000 amounts amounts Fair values Assets $2,175,000 $900,000 $1,042,500 Liabilities $1,155,000 1,132,000 $375,000 97,500 405,000 Common shares* 450,000 Retained earnings 570,000 427,500 $2,175,000 $900,000 *Immediately before the acquisition transaction, Green Company had 20,000 common shares outstanding and Blue Inc. had 6,500 common shares outstanding. Green's shares were actively trading at $75 on the date of the acquisition. What amount would Green Company report on its consolidated financial statements for assets immediately after the acquisition transaction? Multiple Choice $3,075,000 $3,217,500 $3,330,000 $3,442,500 On January 1, Year 6, Green Company acquired 100 percent of the outstanding common shares of Blue Inc. by issuing 10.000 common shares. The carrying amounts and the fair values of both companies immediately before the acquisition were as follows: Green Company Carrying Blue Inc. Carrying Fair values $2,400,000 amounts amounts Fair values Assets $2,175,000 $900,000 $1,042,500 Liabilities $1,155,000 1,132,000 $375,000 97,500 405,000 Common shares* 450,000 Retained earnings 570,000 427,500 $2,175,000 $900,000 *Immediately before the acquisition transaction, Green Company had 20,000 common shares outstanding and Blue Inc. had 6,500 common shares outstanding. Green's shares were actively trading at $75 on the date of the acquisition. What amount would Green Company report on its consolidated financial statements for assets immediately after the acquisition transaction? Multiple Choice $3,075,000 $3,217,500 $3,330,000 $3,442,500
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Cornerstones of Financial and Managerial Accounting
ISBN: 978-1111879044
2nd edition
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
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