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The fair value of Sneed Company’s assets and liabilities

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The fair value of Sneed Company’s assets and liabilities On January 2, 2013, Parr Company purchased 100% of the common stock of Sneed Company for $420,000. The fair value of Sneed Company’s assets and liabilities are equal to their book values except that land has a fair value of $120,000 and building have a fair value of $260,000. Instructions (a) Complete the worksheet below for preparing a consolidated balance sheet. You may add accounts to the worksheet if necessary. (b) Prepare a consolidated balance sheet for Parr Company and Subsidiary on January 2, 2013. PARR COMPANY ANDSUBSIDIARY Worksheet–Consolidated Balance Sheet January 2, 2013 (Acquisition Date) Assets Parr Company Sneed Company Eliminations Consolidated Data Debits Credits Current assets $30,000 $40,000 Investment in Sneed common stock 420,000 Land 50,000 80,000 Buildings (net) 150,000 170,000 Totals 650,000 290,000 Liabilities and Stockholders’ Equity Current liabilities 40,000 30,000 Common stock–Parr 370,000 Common stock–Sneed 200,000 Retained earnings–Parr 240,000 Retained earnings–Sneed 60,000 Total 650,000 290,000 Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help

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