March 1, 2015, Collier Enterprises purchases a 100% interest in Robby Corporation for $480,000 cash. Robby Corporation applies push-down accounting principles Problem 2-5 (LO 5, 6, 9) 100% purchase, goodwill, push- to account for this acquisition. Robby Corporation has the following balance sheet on February 28, 2015: vollo sdr Robby Corporation Balance Sheet February 28, 2015 Liabilities and Equity Assets $ 60,000 Current liabilities.. 80,000 Bonds payable 40,000 Common stock ($5). 300,000 Paid-in capital in excess of par (120,000) Retained earnings 220,000 $ 50,000 100,000 50,000 250,000 70,000 Accounts receivable Inventory Land.. Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment. (60,000) $ 520,000 Total assets.. Total liabilities and equity $520,000 ... Collier Enterprises receives an independent appraisal on the fair values of Robby Corpora- tion's assets and liabilities. The controller has reviewed the following figures and accepts them as reasonable: Accounts receivable $ 60,000 100,000 Inventory Land.. Buildings Equipment . Current liabilities 55,000 200,000 150,000 50,000 98,000 Bonds payable 1. Record the investment in Robby Corporation. 2. Prepare the value analysis schedule and the determination and distribution of excess schedule. 3. Give Robby Corporation's adjusting entry.
March 1, 2015, Collier Enterprises purchases a 100% interest in Robby Corporation for $480,000 cash. Robby Corporation applies push-down accounting principles Problem 2-5 (LO 5, 6, 9) 100% purchase, goodwill, push- to account for this acquisition. Robby Corporation has the following balance sheet on February 28, 2015: vollo sdr Robby Corporation Balance Sheet February 28, 2015 Liabilities and Equity Assets $ 60,000 Current liabilities.. 80,000 Bonds payable 40,000 Common stock ($5). 300,000 Paid-in capital in excess of par (120,000) Retained earnings 220,000 $ 50,000 100,000 50,000 250,000 70,000 Accounts receivable Inventory Land.. Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment. (60,000) $ 520,000 Total assets.. Total liabilities and equity $520,000 ... Collier Enterprises receives an independent appraisal on the fair values of Robby Corpora- tion's assets and liabilities. The controller has reviewed the following figures and accepts them as reasonable: Accounts receivable $ 60,000 100,000 Inventory Land.. Buildings Equipment . Current liabilities 55,000 200,000 150,000 50,000 98,000 Bonds payable 1. Record the investment in Robby Corporation. 2. Prepare the value analysis schedule and the determination and distribution of excess schedule. 3. Give Robby Corporation's adjusting entry.
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter15: Investments And Fair Value Accounting
Section: Chapter Questions
Problem 2E
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Price paid cash , Number of shares, Market Price per share be?
Would it be?
Cash: $480,000 Number of shares 10,000 Market price per share $5.00 Total of $530,000?
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