Problem 2-40 (Algo) (LO 2-10) On May 1, Burns Corporation acquired 100 percent of the outstanding...

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Problem 2-40 (Algo) (LO 2-10) On May 1, Burns Corporation acquired 100 percent of the outstanding ownership shares of Quigley Corporation in exchange for $742,500 cash. At the acquisition date, Quigley's book and fair values were as follows: Cash Receivables Inventory Land Items Building and equipment (net) Patented technology Total assets Accounts payable Long-term liabilities Common stock ($5 par value) dditional paid-in capital etained earnings Book Value $ 119,500 Fair Value $ 119,500 294,000 278,000 294,000 337,000 167,500 138,500 310,000 379,000 0 220,000 $ 1,488,000 $ 132,500 778,000 0 0 $ 1,169,000 $ 132,500 778,000 210,000 90,000 (41,500) Total liabilities and stockholders' equity $ 1,169,000 0 0 s directs Quigley to seek additional financing for expansion through a new long-term debt issue. Consequently, Quigley a set of financial statements separate from that of its new parent to support its request for debt and accompanying atory filings. Quigley elects to apply pushdown accounting in order to show recent fair valuations for its assets. red: re a separate acquisition-date balance sheet for Quigley Corporation using pushdown accounting. nput all amounts as positive values. Problem 2-40 (Algo) (LO 2-10) On May 1, Burns Corporation acquired 100 percent of the outstanding ownership shares of Quigley Corporation in exchange for $742,500 cash. At the acquisition date, Quigley's book and fair values were as follows: Cash Receivables Inventory Land Items Building and equipment (net) Patented technology Total assets Accounts payable Long-term liabilities Common stock ($5 par value) dditional paid-in capital etained earnings Book Value $ 119,500 Fair Value $ 119,500 294,000 278,000 294,000 337,000 167,500 138,500 310,000 379,000 0 220,000 $ 1,488,000 $ 132,500 778,000 0 0 $ 1,169,000 $ 132,500 778,000 210,000 90,000 (41,500) Total liabilities and stockholders' equity $ 1,169,000 0 0 s directs Quigley to seek additional financing for expansion through a new long-term debt issue. Consequently, Quigley a set of financial statements separate from that of its new parent to support its request for debt and accompanying atory filings. Quigley elects to apply pushdown accounting in order to show recent fair valuations for its assets. red: re a separate acquisition-date balance sheet for Quigley Corporation using pushdown accounting. nput all amounts as positive values.