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Home / Questions / Cash $ 60000 Accounts receivable 127000 Inventory On June 30 Plaster allocated the exc...

Cash $ 60000 Accounts receivable 127000 Inventory On June 30 Plaster allocated the excess acquisition-date fair value over book value to Stucco’s assets as follows

Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 60,000

Accounts receivable . . . . . . . . . . . . . . . . . . 127,000

Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203,000

Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65,000

Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175,000

Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . 300,000

Accounts payable . . . . . . . . . . . . . . . . . . . . (35,000)

On June 30, Plaster allocated the excess acquisition-date fair value over book value to Stucco’s assets as follows:

Equipment (3-year remaining life) . . . . . . . . . . $ 75,000

Database (10-year remaining life) . . . . . . . . . . 175,000

At the end of 2018, the following comparative (2017 and 2018) balance sheets and consolidated income statement were available:

Additional Information for 2018

∙ On December 1, Stucco paid a $40,000 dividend. During the year, Plaster paid $100,000 in dividends.

∙ During the year, Plaster issued $800,000 in long-term debt at par.

∙ Plaster reported no asset purchases or dispositions other than the acquisition of Stucco.

Prepare a 2018 consolidated statement of cash flows for Plaster and Stucco. Use the indirect method of reporting cash flows from operating activities.

Apr 26 2020 View more View Less

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