Question: Please can someone answer these questions with solution for my basis of my study... Thank you! A Co. issued bonds with face amount of $1M
Please can someone answer these questions with solution for my basis of my study... Thank you!
A Co. issued bonds with face amount of $1M and fair value of $1.2M in exchange for all the assets and liabilities of B Co. A Co. incurred bond issue cost of $30,000 and legal fees of $10,000 in negotiating the business combination. The carrying amounts and fair value of B's assets and liabilities at the acquisition are shown in the image:

Assets Carrying amounts Fair values Receivables - net 300,000 200,000 Inventory 600,000 450,000 Land 800,000 1,000,000 Goodwill 80,000 50,000 Total assets 1,780,000 1,700,000 Liabilities Payables 320,000 390,000
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