Van NV acquired Jong NV by issuing convertible bonds for $5,000,000 and 500,000 shares of $10 par
Question:
Van NV acquired Jong NV by issuing convertible bonds for $5,000,000 and 500,000 shares of $10 par value of common stock with market value of $5,000,000. Given below is the information of Jong NV's liabilities at the time of the acquisition (in thousands):
Book Value Fair Value
Accounts payable $3,000 $2,500
Unearned revenues 400 400
Interest payable 100 100
Notes payable 6,700 7,000
Bonds payable 12,000 10,000
REQUIRED :
Determine the number of Jong NV's liabilities to be recognized by Van NV as a result of the acquisition.
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield