Paul Corp. Acquired 100% of Sam inks voting stock on July 1 20x1. The following
ID: 2412464 • Letter: P
Question
Paul Corp. Acquired 100% of Sam inks voting stock on July 1 20x1. The following information was available as of December 31 20X1 Net income. Net income Jan1-June 30,20x1. July1-Dec31,20x1 Paul Corp. $300,000. $420,000 Sam Inc. $150,000. $220,00How much net income should be reported and Paul corpse income statement for 20X1? A. $370,000 B. $720,000 C. $940,000 D.$1,090,000
Big company acquired the following assets and liabilities of little company(fair values listed below) for $470,000 cash Inventory $70,000, land $100,000, buildings and equipment $320,000, and current liabilities $50,000. Assuming these items are all recorded at their acquisition date fair values, what additional item needs to be recorded and how will be accounted for in the future?
A. $30,000 Goodwell, capitalize and tested for impairment B. $30,000 bargain purchase, recognized in current earnings C.$30,000 bargin purchase, capitalize and recognize overtime D.$30,000 Goodwill, capitalized and amortized over time Paul Corp. Acquired 100% of Sam inks voting stock on July 1 20x1. The following information was available as of December 31 20X1 Net income. Net income Jan1-June 30,20x1. July1-Dec31,20x1 Paul Corp. $300,000. $420,000 Sam Inc. $150,000. $220,00
How much net income should be reported and Paul corpse income statement for 20X1? A. $370,000 B. $720,000 C. $940,000 D.$1,090,000
Big company acquired the following assets and liabilities of little company(fair values listed below) for $470,000 cash Inventory $70,000, land $100,000, buildings and equipment $320,000, and current liabilities $50,000. Assuming these items are all recorded at their acquisition date fair values, what additional item needs to be recorded and how will be accounted for in the future?
A. $30,000 Goodwell, capitalize and tested for impairment B. $30,000 bargain purchase, recognized in current earnings C.$30,000 bargin purchase, capitalize and recognize overtime D.$30,000 Goodwill, capitalized and amortized over time Net income. Net income Jan1-June 30,20x1. July1-Dec31,20x1 Paul Corp. $300,000. $420,000 Sam Inc. $150,000. $220,00
How much net income should be reported and Paul corpse income statement for 20X1? A. $370,000 B. $720,000 C. $940,000 D.$1,090,000
Big company acquired the following assets and liabilities of little company(fair values listed below) for $470,000 cash Inventory $70,000, land $100,000, buildings and equipment $320,000, and current liabilities $50,000. Assuming these items are all recorded at their acquisition date fair values, what additional item needs to be recorded and how will be accounted for in the future?
A. $30,000 Goodwell, capitalize and tested for impairment B. $30,000 bargain purchase, recognized in current earnings C.$30,000 bargin purchase, capitalize and recognize overtime D.$30,000 Goodwill, capitalized and amortized over time
Explanation / Answer
B. $720000 total income of Paul corp for the year
A. $30000 Goodwill capitalize and tested. For impairment