On December 31, year 1, Saxe Corporation was acquired by Poe Coporation. In the business combination,...
On December 31, year 1, Saxe Corporation was acquired by Poe Coporation. In the business combination, Poe issued 200,000 shares of its $10 par common stock, with a market price of $10 a share, for all of Saxe's common stock. The Stockholders' equity section of each company's balance sheet immediately befoe the combination was
POE SAXE
Common stock: $3,000,000 $1,500,000
Additional paid in capital: 1,300,000 150,000
Retained Earnings: 2,500,000 850,000
Total: 6,800,000 2,500,000
In December 31, year 1 consolidated balance sheet, retained earnings should be reported at? Please show work
Homework Answers
After consolidation subsidiary's equity balances are eliminated against the investment value of Saxe in the books of Poe corporation. This is one of the adjusted consolidated entry to eliminate the investment from the parent's book against the stockholder's equity of subsidiary. Thus, in the consolidated balance sheet only the parent's retained earnings would be reported as subsidiary's retained earnings is eliminated.
Thus, retained earnings in the consolidated balance sheet would be reflected as $2,500,000
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On December 31, year 1, Saxe Corporation was acquired by Poe
Coporation. In the business combination,...
objective question On December 31, 20X3, Saxe Corporation was merged into Poe Corporation. In the business...
objective question
On December 31, 20X3, Saxe Corporation was merged into Poe Corporation. In the business combination, Poe issued 200,000 shares of its $10 par common stock, with a market price of $18 a share, for all of Saxe's common stock. The stockholders' equity section of each company's balance sheet immediately before the combination was: Poe Saxe Common Stock Additional Paid-In Capital Retained Earnings $3,000,000 1,300,000 2,500,000 $6,800,000 $1,500,000 150,000 850,000 $2,500,000 In the December 31, 20X3, combined balance sheet,...
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On December 31, 2019, Manama Corporation issued 90,000 shares of its no-par, no-stated-value common stock (current...
On December 31, 2019, Manama Corporation issued 90,000 shares of its no-par, no-stated-value common stock (current fair value $14 a share) for 36,000 shares of the outstanding $10 par common stock of Bahrain Company. The $100,000 out-of-pocket costs of the business combination paid by Manama on December 31, 2019, were allocable as follows: 45% to finders, legal, and accounting fees directly related to the business combination: 55% to the SEC registration statement for Manama’s common stock issued in the businesses...
help me On December 31, 2019, Manama Corporation issued 90,000 shares of its no-par, no-stated-value common...
help me
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objective question
On December 31, 20X3, Saxe Corporation was merged into Poe Corporation. In the business combination, Poe issued 200,000 shares of its $10 par common stock, with a market price of $18 a share, for all of Saxe's common stock. The stockholders' equity section of each company's balance sheet immediately before the combination was: Poe Saxe Common Stock Additional Paid-In Capital Retained Earnings $3,000,000 1,300,000 2,500,000 $6,800,000 $1,500,000 150,000 850,000 $2,500,000 In the December 31, 20X3, combined balance sheet,...
help me
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