Scribd Logo
Upload

Welcome to Scribd!

  • On July 1 2016 Roland Company Exchanged 18 000 of Its

    Uploaded by

    Muhammad Shahid
    35 views1 page
    On July 1, 2016, Roland Company exchanged 18,000 shares worth $810,000 to acquire all shares of Downes Company. Roland also paid $40,000 in acquisition costs. Downes had assets including $70,000 in other current assets, $80,000 in inventory, $90,000 in land, $150,000 in buildings, and $100,000 in equipment for a total of $490,000 in assets acquired.

    Original Description:

    Uploading for research purpose

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    On July 1, 2016, Roland Company exchanged 18,000 shares worth $810,000 to acquire all shares of Downes Company. Roland also paid $40,000 in acquisition costs. Downes had assets including $70,000 in other current assets, $80,000 in inventory, $90,000 in land, $150,000 in buildings, and $100,000 in equipment for a total of $490,000 in assets acquired.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    35 views1 page

    On July 1 2016 Roland Company Exchanged 18 000 of Its

    Uploaded by

    Muhammad Shahid
    On July 1, 2016, Roland Company exchanged 18,000 shares worth $810,000 to acquire all shares of Downes Company. Roland also paid $40,000 in acquisition costs. Downes had assets including $70,000 in other current assets, $80,000 in inventory, $90,000 in land, $150,000 in buildings, and $100,000 in equipment for a total of $490,000 in assets acquired.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    On July 1 2016 Roland Company exchanged 18 000 of its

    #6214
    On July 1, 2016, Roland Company exchanged 18,000 of its $45 fair value ($1 par value) shares
    for all the outstanding shares of Downes Company. Roland paid acquisition costs of $40,000.
    The two companies had the following balance sheets on July 1, 2016:The following fair values
    applied to Downes's assets:Other current assets.............................$ 70,000Inventory..................
    .........................80,000Land................................................90,000Building.....................................
    .....150,000Equipment.......................................100,000Requirement1. Record the investment in
    Downes Company and any other entry necessitated by the purchase.2. Prepare the value
    analysis and the determination and distribution of excess schedule.3. Prepare a consolidated
    balance sheet for July 1, 2016, immediately subsequent to the purchase.View Solution:
    On July 1 2016 Roland Company exchanged 18 000 of its

    ANSWER
    http://paperinstant.com/downloads/on-july-1-2016-roland-company-exchanged-18-000-of-its/

    1/1
    Powered by TCPDF (www.tcpdf.org)

    You might also like