The shareholders of Prong Company and Horn Company agreed to a statutory amalgamation under which a share
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After the amalgamation, Prong Company changed its name to Pronghorn Corporation. The statements of financial position of the two companies on August 31, Year 5, were as follows:
The carrying amounts of the net assets of both companies were equal to fair values except for plant and equipment. The fair values of plant and equipment were as follows:
Prong Company .... $500,000
Horn Company ...... 280,000
Prongs other assets include patent registration costs with a carrying amount of $25,000. An independent appraiser placed a value of $100,000 on this patent.
Required:
Prepare the statement of financial position of Pronghorn Corporation immediately after the statutory amalgamation.
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For
Modern Advanced Accounting In Canada
ISBN: 9781259066481
7th Edition
Authors: Hilton Murray, Herauf Darrell
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