Pirate Corporation acquired 100 percent of Ship Corporation's common stock on January 1, 20X9. Summarized balance sheet information for the two companies immediately after the combination is provided: Pirate Corp.Ship Corporation Item Book ValueFair Value Cash and Receivables $60,000 $15,000 $15,000 Inventory 110,000 32,000 38,000 Buildings and Equipment (net) 160,000 90,000 120,000 Investment in Ship Stock 150,000 Total $480,000 $137,000 Accounts Payable $40,000 $5,000 $5,000 Bonds Payable 200,000 40,000 40,000 Common Stock 100,000 40,000 Retained Earnings 140,000 52,000 Total $480,000 $137,000 Based on the information provided, the consolidated
balance sheet of Pirate and Ship will reflect goodwill in the amount of:
A. $36,000.
B. $0.
C. $58,000.
D. $22,000.
Answer: D
You might also like to view...
Jake, a manager at Wishful Company, is concerned because negotiations with the union are breaking down, and the union is discussing a strike. What would be the major harm from management's perspective?
A. The company would have to hire replacement workers, and they might be more productive. B. Employees are rarely serious when they threaten to go on strike. C. Employees will call off the strike if they do not receive pay from their employer. D. Employees will decide they are better off without union representation. E. When the company does not have enough workers, production output will fall.
A marketer has selected a single city in which to conduct a test market. What can be concluded from this choice of a single-city test market?
What will be an ideal response?
EZ Hauling holds itself out to customers as being a corporation but makes no attempt to incorporate. In this circumstance, EZ Hauling is most likely A) a corporation by estoppel
B) a de facto corporation. C) a de jure corporation. D) a benefit corporation.
A landlord cannot be held vicariously liable for the infringing sales of a tenant
Indicate whether the statement is true or false