Plant acquisitions for selected companies are as follows.1. Sheffield Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co., for a lump-sum price of$938,000. At the time of purchase, Torres's assets had the following book and appraisal values.Book ValuesAppraisalValuesLand$268,000$201,000Buildings335,000469,000Equipment402,000402,000To be conservative, the company decided to take the lower of the two values for each asset acquired. The following entry was made.Land201,000Buildings335,000Equipment402,000Cash938,0002. Tamarisk Enterprises purchased store equipment by making a $2,680 cash down payment and signing a 1-year, $30,820, 10% notepayable. The purchase was recorded as follows.Equipment36,582

The information you provided details plant acquisitions for two companies: Sheffield Industries Inc.…

Answered: Plant acquisitions for selected…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Plant acquisitions for selected companies are as follows: 1. Sandhill Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co., for a lump-sum price of $765,000. At the time of purchase, Torres’s assets had the following book and appraisal values: Book Value Appraisal Value Land $199,000 $151,000 Buildings 241,000 350,000 Equipment 373,000 373,000 Sandhill Industries decided to take the lower of the two values for each asset it acquired. The following entry was made: Land 151,000 Buildings 241,000 Equipment 373,000 Cash 765,000 Sandhill Industries expects the building structure to last another 20 years; however, it expects that it will have to replace the roof in the next five years. Torres Co. indicated that, on initial construction of the building, the roof amounted to 20% of the cost of the building. Because of the unique…
Plant acquisitions for selected companies are as follows.1. Bramble Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co., for a lump-sum price of $756,000. At the time of purchase, Torres’s assets had the following book and appraisal values. Book Values Appraisal Values Land $216,000 $162,000 Buildings 270,000 378,000 Equipment 324,000 324,000 To be conservative, the company decided to take the lower of the two values for each asset acquired. The following entry was made. Land 162,000 Buildings 270,000 Equipment 324,000 Cash 756,000 2. Sunland Enterprises purchased store equipment by making a $2,160 cash down payment and signing a 1-year, $24,840, 10% note payable. The purchase was recorded as follows. Equipment 29,484 Cash 2,160 Notes Payable 24,840 Interest Payable 2,484 3. Coronado Company purchased…
Plant acquisitions for selected companies are as follows: 1. Cullumber Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co., for a lump-sum price of $692,000. At the time of purchase, Torres’s assets had the following book and appraisal values: Book Value Appraisal Value Land $219,000 $144,000 Buildings 244,000 351,000 Equipment 304,000 304,000 Cullumber Industries decided to take the lower of the two values for each asset it acquired. The following entry was made: Land 144,000 Buildings 244,000 Equipment 304,000 Cash 692,000 Cullumber Industries expects the building structure to last another 20 years; however, it expects that it will have to replace the roof in the next five years. Torres Co. indicated that, on initial construction of the building, the roof amounted to 19% of the cost of the building. Because of the unique design and materials needed to replace the roof,…
Plant acquisitions for selected companies are as follows: 1. Cullumber Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co., for a lump-sum price of $692,000. At the time of purchase, Torres’s assets had the following book and appraisal values: Book Value Appraisal Value Land $219,000 $144,000 Buildings 244,000 351,000 Equipment 304,000 304,000 Cullumber Industries decided to take the lower of the two values for each asset it acquired. The following entry was made: Land 144,000 Buildings 244,000 Equipment 304,000 Cash 692,000 Cullumber Industries expects the building structure to last another 20 years; however, it expects that it will have to replace the roof in the next five years. Torres Co. indicated that, on initial construction of the building, the roof amounted to 19% of the cost of the building. Because of the unique design and materials needed to replace the roof,…
Plant acquisitions for selected companies are as follows: 1. Sandhill Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co., for a lump-sum price of $720,000. At the time of purchase, Torres’s assets had the following book and appraisal values: Book Value Appraisal Value Land $210,000 $140,000 Buildings 248,000 349,000 Equipment 332,000 332,000 Sandhill Industries decided to take the lower of the two values for each asset it acquired. The following entry was made: Land 140,000 Buildings 248,000 Equipment 332,000 Cash 720,000 Sandhill Industries expects the building structure to last another 20 years; however, it expects that it will have to replace the roof in the next five years. Torres Co. indicated that, on initial construction of the building, the roof amounted to 20% of the cost of the building. Because of the unique design and materials needed to replace the roof, the…
Plant acquisitions for selected companies are as follows. 1. Marigold Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co., fora lump-sum price of $910,000. At the time of purchase, Torres's assets had the following book and appraisal values. Appraisal Book Values Values Land $260,000 $195,000 Buildings 325,000 455,000 Equipment 390,000 390,000 To be conservative, the company decided to take the lower of the two values for each asset acquired. The following entry was made. Land 195,000 Buildings 325,000 Equipment 390,000 Cash 910,000
Plant acquisitions for selected companies are as follows. 1. Novak Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co., for a lump-sum price of $1.050,000. At the time of purchase, Torres's assets had the following book and appraisal values. Land Buildings Equipment Land Book Values Buildings Equipment Cash $300,000 375,000 450,000 To be conservative, the company decided to take the lower of the two values for each asset acquired. The following entry was made. 225,000 Appraisal Values $225,000 525,000 450,000 375,000 450,000 1,050,000 SUPPORT
Columbia recently acquired all of Mercury's net assets in a business acquisition. The cash purchase price was $22,000,000. Mercury's assests and liabilites had the following costs and appraised values: Current assets Land, building and equipment Current liabilites Mortgage payable How much goodwill will rewult from this transaction? Cost Basis $ 6,000,000 $ 14,000,000 Appraised Value $ 6,000,000 $23,000,000 $4,000,000 $4,000,000 $ 10,000,000 $10,000,000
Mainline Produce Corporation acquired all the outstanding common stock of Iceberg Lettuce Corporation for $30,000,000 in cash. The book values and fair values of Iceberg's assets and liabilities were as follows: Current assets Property, plant, and equipment Other assets Current liabilities Long-term liabilities Required: 1. Calculate the amount paid for goodwill. 2. Determine the financial statement effects of the acquisition. Required 1 Required 2 Complete this question by entering your answers in the tabs below. Book Value $ 11,400,000 20,200,000 3,400,000 7,800,000 13,200,000 Assets Determine the financial statement effects of the acquisition. Note: Amounts to be deducted should be indicated with a minus sign. Enter your answer in millions rounded to 1 decimal place. (i.e. 5,500,000 should be entered as 5.5). Accounts Payable Accounts Receivable Accumulated Depreciation Advertising Expense Fair Value $ 14,400,000 26,200,000 4,400,000 7,800,000 12,200,000 Balance Sheet Liabilities…
Knight Company made the following acquisitions during the year Purchased for P5,400,000 , excluding appraiser fee of P100,000, a warehouse building and the land on which it is located The land had an appraised value of P3,000,000 and original cost of P1,400,000 The building had an appraised value of P2,000, and original cost of P2,800,000 Purchased an office building and the land on which it is located for P7,500,000 and assumed an existing P2,500,000 mortgage For realty tax purposes, the property is assessed at P9.600,000,60\% of which is allocated to the land What is the total cost of building?
ACME Co. paid $110,000 for the net assets of Comb Corp. At the time of the acquisition the following information was available related to Comb's balance sheet: Book Value Fair Value Current Assets $50,000 $ 50,000 Building 80,000 100,000 Equipment 40,000 50,000 Liabilities 30,000 30,000 What is the amount of goodwill or gain related to the acquisition? a. Goodwill of $60,000 b. Goodwill of $30,000 c. A gain of $30,000 d. A gain of $60,000
ACME Co. paid $110,000 for the net assets of Comb Corp. At the time of the acquisition the following information was available related to Comb's balance sheet: Book Value Fair Value Current Assets $50,000 $ 50,000 Building 80,000 100,000 Equipment 40,000 50,000 Liabilities 30,000 30,000 What is the amount recorded by ACME for the Building? a. $110,000 b. $20,000 c. $80,000 d. $100,000

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS