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mecervanies

Note: Parenthesis indicate a credit balance

In the following situations, determine the value that would be shown in the consolidated financial statements for West Company at date of acquisition.

Assume the acquisition took place at December $31,2025.$ West issued $50,000$ shares of its common stock with a fair market value of $\backslash (\backslash$$ $35\backslash )$ for all of the outstanding common shares issuance costs of $\backslash (\backslash$$ $15,000\backslash )$ and direct costs of $\backslash (\backslash$$ $10,000\backslash )$ were paid. West is applying the acquisition method in accounting for Star to settle a difference of opinion regarding Star's fa promises to pay an additional $\backslash (\backslash$$ $41,600\backslash )$ to the former owners if Star's earnings exceed a certain sum during the next year. Given the probability of the required contingency paymen discount rate, the expected present value of the contingency is $\backslash (\backslash$$ $5000\backslash ).$

Compute consolidated goodwill at date of acquisition? a$.\backslash (\backslash$$ $430,000\backslash )$b$.\backslash$$$0$c$.\backslash (\backslash$$ $455,000\backslash )$d$.\backslash (\backslash$$ $440,000\backslash )$ Acc $4011-$ final exam. xlsx

The financial balances for the West Company and the Star Company as of December $31,2025,$ are presented below. Also included are the fair market values for Star Co$.$ Company's net as

Note: Parenthesis indicate a credit balance

In the following situations, determine the value that would be shown in the consolidated financial statements for West Company at date of acquisition.

Assume the acquisition took place at December $31,2025.$ West issued $50,000$ shares of its common stock with a fair market value of $\backslash (\backslash$$ $35\backslash )$ for all of the outstanding common shares of Star. $5$