Home / Questions / Acquisition Using Debentures Fortune Corporation used debentures with a par value of $625,
Acquisition Using Debentures
Fortune Corporation used debentures with a par value of $625,000 to acquire 100 percent of Sorden Company’s net assets on January 1, 20X2. On that date, the fair value of the bonds issued by Fortune was $608,000. The following balance sheet data were reported by Sorden:
|
Balance Sheet Item |
Historical Cost |
Fair Value |
|
Cash & Receivables |
$ 55,000 |
$ 50,000 |
|
Inventory |
105,000 |
200,000 |
|
Land |
60,000 |
100,000 |
|
Plant & Equipment |
400,000 |
300,000 |
|
Less: Accumulated Depreciation |
(150,000) |
|
|
Goodwill |
10,000 |
|
|
Total Assets |
$480,000 |
$650,000 |
|
Accounts Payable |
$ 50,000 |
$ 50,000 |
|
Common Stock |
100,000 |
|
|
Additional Paid-In Capital |
60,000 |
|
|
Retained Earnings |
270,000 |
|
|
Total Liabilities & Equities |
$480,000 |
Required
Give the journal entry that Fortune recorded at the time of exchange.
Nov 24 2017 View more View Less
Financial marketsquestion.. A bank is earning 4.6 percent on its $225 million in earning assets and is paying 2.55 percent on its liabilities. What is the bank's interest...
Sep 05 2020Which of the following documents is not used as input for the validate scope process? 11o The project management plan, containing the scope baseline consisting of the pro...
Jun 02 2020Draft the source selection criteria that might be used for evaluating proposals to provide laptops for all students, faculty, and staff at your college or university or t...
Jun 03 2020Suggest a possible explanation of autism in terms of the interaction between heredity and environmental factors.
Feb 04 20204, 5 and 6 shows a chuck jaw of a lathe Figure: 4 Figure: 5 Body Manufactured from high strength alloyed cast iron. ensure better bearing properties for longer life . Ma...
Aug 19 2020what is definition of Service? what is definition of Quality? explain as much as you can.
Jun 02 2020balance the following interior angles (angles to the right) of a five-sided closed polygon traverse using method 1 of section 10.2. if the azimuth of side AB is fixed at ...
Jul 09 2020The cost required to maintain an electron microscope is known to increase by a ?xed percentage each year. A high tech equipment maintenance company has offered it service...
Jun 01 2020Identify and describe the five most important ratios for a potential bank investment in a short-term corporate loan. Explain the reasoning for your selection. Illustrate ...
Aug 19 2020According to Hersey and Blanchard, a high task-low relationship situation would require which of the following leadership styles?[A]Delegating [B]Directing [C]Participa...
Dec 27 2017