Richard Co. Ulmer Co. Cash $400.000 $150,000 Buildings & Equipment $700,000 $400
ID: 2374696 • Letter: R
Question
Richard Co.
Ulmer Co.
Cash
$400.000
$150,000
Buildings & Equipment
$700,000
$400,000
Accumulated Depreciation
$(300,000)
$(150,000)
Other Identifiable Assets
$100,000
$200,000
Total Assets
$900,000
$600,000
Liabilities
$200,000
$100,000
Common Stock
$400.000
$300,000
Additional Paid-In Capital
$160,000
$100,000
Retained Earnings
$140,000
$100,000
Total Liabilities and Equity
$900,000
$600,000
Based on the information given above, the amount of Goodwill to be recognized in connection with the merger is:
Options:
A. 0
B. $180,000
C. $200,000
D. $300,000
White
Red
Common Stock ($10 par)
$300,000
$150,000
Additional Paid-In Capital
$150,000
$30,000
Retained Earnings
$640,000
$120,000
$990,000
$300,000
Refer to the above information. Assume the fair value of Red's identifiable net assets is $50,000 greater than their book value. In the balance sheet prepared immediately following the combination, goodwill should be reported at:
Options:
A. 0
B. $50,000
C. $136,000
D. $186,000
Options:
Net Assets
Additional Paid-In Capital
A.
$250,000
$138,000
B.
$260,000
$138,000
C.
$260,000
$150,000
D.
$272,000
$150,000
Richard Co.
Ulmer Co.
Cash
$400.000
$150,000
Buildings & Equipment
$700,000
$400,000
Accumulated Depreciation
$(300,000)
$(150,000)
Other Identifiable Assets
$100,000
$200,000
Total Assets
$900,000
$600,000
Liabilities
$200,000
$100,000
Common Stock
$400.000
$300,000
Additional Paid-In Capital
$160,000
$100,000
Retained Earnings
$140,000
$100,000
Total Liabilities and Equity
$900,000
$600,000
Explanation / Answer
1 B
2 C
3 D
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