Pancor Corporation paid cash of $161,000 to acquire Sink Company's net assets on February 1, 20X3. The balance sheet data for the two companies and fair value information for Sink immediately before the business combination were: Balance Sheet Item Book Value Assets Cash Accounts Receivable Inventory Patents Buildings and Equipment Less: Accumulated Depreciation Total Assets Liabilities and Equities Accounts Payable Notes Payable Common Stock: $10 par value $8 par value Additional Paid-In Capital Retained Earnings Total Liabilities and Equities Pancor Corporation Book Value $ 253,000 158,000 185,000 83,000 393,000 (183,000) $ 889,000 $ 82,000 131,000 185,000 143,000 348,000 $ 889,000 Sink Company Fair Value $ 12,000 34,000 32,000 51,000 325,000 (193,000) $ 261,000 $ 60,000 120,000 12,000 6,000 63,000 $ 261,000 $ 12,000 34,000 48,000 58,000 139,000 $ 291,000 $ 60,000 120,000 Required: Prepare a balance sheet for Pancor immediately following the acquisition.

Pancor Corporation paid cash of $161,000 to acquire Sink Company's net assets on February 1, 20X3. The balance sheet data for the two companies and fair value information for Sink immediately before the business combination were: Balance Sheet Item Book Value Assets Cash Accounts Receivable Inventory Patents Buildings and Equipment Less: Accumulated Depreciation Total Assets Liabilities and Equities Accounts Payable Notes Payable Common Stock: $10 par value $8 par value Additional Paid-In Capital Retained Earnings Total Liabilities and Equities Pancor Corporation Book Value $ 253,000 158,000 185,000 83,000 393,000 (183,000) $ 889,000 $ 82,000 131,000 185,000 143,000 348,000 $ 889,000 Sink Company Fair Value $ 12,000 34,000 32,000 51,000 325,000 (193,000) $ 261,000 $ 60,000 120,000 12,000 6,000 63,000 $ 261,000 $ 12,000 34,000 48,000 58,000 139,000 $ 291,000 $ 60,000 120,000 Required: Prepare a balance sheet for Pancor immediately following the acquisition.

Name: Hw.138. Pancor Corporation paid cash of $161,000 toacquire Sink Compan
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Description: Hw.138. Pancor Corporation paid cash of $161,000 toacquire Sink Company's net assets on February1, 20X3. The balance sheet data for the twocompanies and fair value information for Sinkimmediately before the business combinationwere:Balance Sheet Item

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.23E: Unusual income statement items Assume that the amount of each of the following items is material to...

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