On July 1, TruData Company issues 10,000 shares of its common stock with a $5 par value and a $40 fair value in exchange for all of Webstat Company's outstanding voting shares. Webstat's precombination book and fair values are shown along with book values for TruData's accounts as follows. Revenues (1/1 to 7/1) Expenses (1/1 to 7/1) Retained earnings, 1/1 Cash and receivables Inventory Patented technology (net) Land Buildings and equipment (net) Liabilities Common stock Additional paid-in capital Multiple Choice $0. TruData Book Values $ (250,000) 170,000 (130,000) 140,000 190,000 $15,000. 230,000 400,000 100,000 (540,000) (300,000) (10,000) Webstat Book Values $ (130,000) 80,000 (150,000) 60,000 145,000 180,000 200,000 75,000 (360,000) (70,000) (30,000) Webstat Fair Values On its acquisition-date consolidated balance sheet, what amount should TruData report as goodwill? $ 60,000 175,000 200,000 225,000 75,000 (350,000)
On July 1, TruData Company issues 10,000 shares of its common stock with a $5 par value and a $40 fair value in exchange for all of Webstat Company's outstanding voting shares. Webstat's precombination book and fair values are shown along with book values for TruData's accounts as follows. Revenues (1/1 to 7/1) Expenses (1/1 to 7/1) Retained earnings, 1/1 Cash and receivables Inventory Patented technology (net) Land Buildings and equipment (net) Liabilities Common stock Additional paid-in capital Multiple Choice $0. TruData Book Values $ (250,000) 170,000 (130,000) 140,000 190,000 $15,000. 230,000 400,000 100,000 (540,000) (300,000) (10,000) Webstat Book Values $ (130,000) 80,000 (150,000) 60,000 145,000 180,000 200,000 75,000 (360,000) (70,000) (30,000) Webstat Fair Values On its acquisition-date consolidated balance sheet, what amount should TruData report as goodwill? $ 60,000 175,000 200,000 225,000 75,000 (350,000)
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 14RE
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