Question: Use the following facts for Multiple Choice problems 17 and 18 each question is independent of the other): The following financial statement information is for
Use the following facts for Multiple Choice problems 17 and 18 each question is independent of the other): The following financial statement information is for an investor company and an investe company on January 1, 2013. On January 1, 2013, the investor company's common stock had a trade market value of $21 per share, and the investice company's common stock had trademarital of 19 per share Book Values Fair Values Investe Investor Pacis inventores Lord Property Sequipment Trademarks & parts Total sets. $120.000 2010 27000 . 000 120.000 20.000 SO 300.000 10000 S4.000 $300.000 C $150 DOO 3100 96 BCS $216.000 $14.000 Db . ... ontok $1 Additional prin capital dearrings Toby 90 DOO 5000 $250 DO Net 17. Asset acquisition market value is different from book value) Assume that the investor company issued 18.000 shares of the investor 's stock in exchange for all of the individually identifiable et d e s of the invite copy in a transaction that qualifies as a business combin. The financial in d hove, was prepared immediately before this transaction. Provide the lovestor Company's home . The investor's book, before consolidatie) for "Goodwind ly following the acquisition of the investee' st b. $6,000 c. $78,000 d. $174,000 18. Stock acquisition (market value is different from book value) Assume that the investoren ad 18.000 whes of the investor 's in exchange for 100% of the common stock of the invece company in a transaction that qualifies as stock a business combination. The financial Information presented above, was prepared immediately before this transaction. Provide the investor Company's bance on the investor's books b cation) for "Investment in lavestee e come l y following the acquisition of vestes como stock: 2. $20,000 b. $192.000 C 5334,800 5378,000
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