Purchase Solution

Consolidated Balance Sheet for Dish Corp.

Not what you're looking for?

Ask Custom Question

Dish Corp. acquired 100% of the stock of Towel Company by issuing 10,000 shares of $10 par common stock with a market value of $60 per share. Summarized balance sheet data for the two companies immediately prior to the acquisition are as follows:

Dish Towel
BV FV BV FV
Total Assets $1,200,000 $1,500,000 $900,000 $1,300,000
Total Liabilities 800,000 700,000 600,000 750,000
Total Equity 400,000 300,000
Total $1,200,000 $900,000

Determine the dollar amounts to be presented in the consolidated balance sheet for (1) total assets, (2) total liabilities, and, (3) total equity.

Attachments
Purchase this Solution

Solution Summary

The solution explains how to prepare a consolidated balance sheet

Solution Preview

First we calculate the amount of goodwill.

The net assets of Towel Company are FV of Total Assets - FV of total liabilities
Net Assets = 1,300,000-750,000=550,000
The amount paid is ...

Purchase this Solution


Free BrainMass Quizzes
Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.

Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

Basics of corporate finance

These questions will test you on your knowledge of finance.

Motivation

This tests some key elements of major motivation theories.