Question

Please, i need Unique answer, Use your own words (don't copy and paste).

*Please, don't use handwriting.

Course: Advanced Financial  Accounting

Q2. X Inc. acquired 100% of the outstanding common stock of Y Inc. for $250,000 cash and 20,000 shares of its own common stock ($5 par value), which was trading at $10 per share at the acquisition date. The estimated fair market values of assets, liabilities, and equity accounts of Y. Inc are as follows:

Require:

1. Calculate Acquisition cost of X.Inc
2. Calculate Good will of X.Inc
3. Pass journal entry in books of X. Inc

Q3. SALMAN Company acquires 60 percent of HAMAD Company’s common stock for $200,000 at the beginning of the year and gains significant influence over HAMAD. During the year, HAMAD has net income of $40,000 and pays dividends of $30,000.

Required: prepare the journal entries in books of SALMAN company under the Equity and Cost Method

Q5. How are direct combination costs, contingent consideration, and a bargain purchase reflected in recording an acquisition transaction?

Answer 1