Required information [The following information applies to the questions displayed below.] On January 1, Park Corporation and Strand Corporation had condensed balance sheets as follows: Strand $ 31,300 49,200 $ 80,500 $ 30,500 Park $ 116,000 107,500 $ 223,500 $ 52,500 Current assets Noncurrent assets Total assets Current liabilities Long-term debt Stockholders' equity 66,000 105,000 Total liabilities and equities $ 223,500 50,000 $ 80,500 On January 2, Park borrowed $70,400 and used the proceeds to obtain 80 percent of the outstanding common shares of Strand. The acquisition price was considered proportionate to Strand's total fair value. The $70,400 debt is payable in 10 equal annual principal payments, plus interest, beginning December 31. The excess fair value of the investment over the underlying book value of the acquired net assets is allocated to inventory (60 percent) and to goodwill (40 percent). On a consolidated balance sheet as of January 2, what should be the amount for stockholders' equity?

Required information [The following information applies to the questions displayed below.] On January 1, Park Corporation and Strand Corporation had condensed balance sheets as follows: Strand $ 31,300 49,200 $ 80,500 $ 30,500 Park $ 116,000 107,500 $ 223,500 $ 52,500 Current assets Noncurrent assets Total assets Current liabilities Long-term debt Stockholders' equity 66,000 105,000 Total liabilities and equities $ 223,500 50,000 $ 80,500 On January 2, Park borrowed $70,400 and used the proceeds to obtain 80 percent of the outstanding common shares of Strand. The acquisition price was considered proportionate to Strand's total fair value. The $70,400 debt is payable in 10 equal annual principal payments, plus interest, beginning December 31. The excess fair value of the investment over the underlying book value of the acquired net assets is allocated to inventory (60 percent) and to goodwill (40 percent). On a consolidated balance sheet as of January 2, what should be the amount for stockholders' equity?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 49E

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Required information [The following information applies to the questions displayed below.] On January 1, Park Corporation and Strand Corporation had condensed balance sheets as follows: Park $ 116,000 107,500 Strand $ 31,300 49,200 $ 80,500 Current assets Noncurrent assets Total assets $ 223,500 $ 52,500 66,000 105,000 Current liabilities $ 30,500 Long-term debt Stockholders' equity 50,000 Total liabilities and equities $ 223,500 $ 80,500 On January 2, Park borrowed $70,400 and used the proceeds to obtain 80 percent of the outstanding common shares of Strand. The acquisition price was considered proportionate to Strand's total fair value. The $70,400 debt is payable in 10 equal annual principal payments, plus interest, beginning December 31. The excess fair value of the investment over the underlying book value of the acquired net assets is allocated to inventory (60 percent) and to goodwill (40 percent). On a consolidated balance sheet as of January 2, what should be the amount for…
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Required information [The following information applies to the questions displayed below.] On January 1, Park Corporation and Strand Corporation had condensed balance sheets as follows: Park Strand $ 116,000 107,500 $ 223,500 $ 31,300 49,200 Current assets Noncurrent assets Total assets $ 80,500 $ 52,500 66,000 105,000 Current liabilities $ 30,500 Long-term debt Stockholders' equity 50,000 $ 80,500 Total liabilities and equities $ 223,500 On January 2, Park borrowed $70,400 and used the proceeds to obtain 80 percent of the outstanding common shares of Strand. The acquisition price was considered proportionate to Strand's total fair value. The $70,400 debt is payable in 10 equal annual principal payments, plus interest, beginning December 31. The excess fair value of the investment over the underlying book value of the acquired net assets is allocated to inventory (60 percent) and to goodwill (40 percent). On a consolidated balance sheet as of January 2, what should be the amount for…
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