Home / Questions / On December 31 2014 Pacifica Inc acquired 100 percent of the voting stock of Seguros Compa...
On December 31, 2014, Pacifica, Inc., acquired 100 percent of the voting stock of Seguros Company. Pacifica will maintain Seguros as a wholly owned subsidiary with its own legal and accounting identity. The consideration transferred to the owner of Seguros included 50,000 newly issued Pacifica common shares ($20 market value, $5 par value) and an agreement to pay an additional $130,000 cash if Seguros meets certain project completion goals by December 31, 2015. Pacifica estimates a 50 percent probability that Seguros will be successful in meeting these goals and uses a 4 percent discount rate to represent the time value of money. Immediately prior to the acquisition, the following data for both firms were available:
In addition, Pacifica assessed a research and development project under way at Seguros to have a fair value of $100,000. Although not yet recorded on its books, Pacifica paid legal fees of $15,000 in connection with the acquisition and $9,000 in stock issue costs. Prepare the following:
a. Pacifica’s entries to account for the consideration transferred to the former owners of Seguros, the direct combination costs, and the stock issue and registration costs. (Use a 0.961538 present value factor where applicable.)
b. A postacquisition column of accounts for Pacifica.
c. A worksheet to produce a consolidated balance sheet as of December 31, 2014.
Jul 23 2020 View more View Less
Use the summation formulas to rewrite the expression without the summationnotation. Use the result to find the sums for
Jul 08 202111. (8 pts) Find the absolute maximum and minimum of the function f(0) = 23 - 6x² + 8 on the interval (-1,6].
May 05 2021A has strike price 32. Put option is identical except that it has a strike price 33. Which of the following statements is true? Marked out of 1,0 Р Пар question Select on...
Apr 14 2021Total utility is maximized in the consumption of two goods by equating the:a. both prices of goods for the last dollar spent on each good. b. marginal utilities of both g...
May 11 2021The wheelbarrow is pushed in the horizontal plane by forces F1 and F2 acting at the ends of the handles. The chassis has mass m, with its center of mass situated at point...
Jun 16 2020Choose the correct option. Then compare your responses with the key at the end of the book.Apparently one of the female applicants forgot to sign (a) her, (b) their application.
Aug 23 2021If California were a separate economy, it would be the ____ largest economy on earth.a.secondb.thirdc.fifthd.eighth72. Capitalism and free enterprise are common, and the ...
Dec 16 20198. After a hurricane knocks out power to thousands of households, the price of electric generators increases threefold. According to economists: A) this is a vivid examp...
Feb 07 2020Plans can be categorized on the basis of their frequency of use. Based on the extent of use, they can be of two types: single-use plans and standing plans. Which of the ...
Mar 07 2018describe the changes that took place in the manufacturing world after the American Revolution and explain how these changes were possible Additionally, address the issu...
Mar 17 2020