Homework Answers
| Teton | Iron | |||
| Book value | Fairvalue | Book value | Fairvalue | |
| Current Assets | 350000 | 350000 | 12000 | 12000 |
| Long term assets, net | 1890000 | 1910000 | 98000 | 103000 |
| Total | ||||
| Current liabilities | -110000 | -110000 | -9000 | -9000 |
| Long term debt | -430000 | -430000 | -61000 | -61000 |
| 1700000 | 1720000 | 40000 | 45000 | |
| Common stock | 700000 | 20000 | ||
| Par value | 5 | 5 | ||
| No of shares | 140000 | 4000 | ||
| Swap ratio | 01:01 | 01:01 | ||
| No of shares of Zinc | 140000 | 4000 | ||
| Market price | 15 | 15 | ||
| Purchase price | 2100000 | 60000 | ||
| Net asset at fair value | 1720000 | 45000 | ||
| Goodwill | 380000 | 15000 |
| Purchase method | ||
| Journal entry in Zinc's books | ||
| Debit | Credit | |
| Current assets | 350000 | |
| Long term assets | 1910000 | |
| Goodwill | 380000 | |
| To current liabilities | 110000 | |
| To long term debt | 430000 | |
| To Share capital | 700000 | |
| To Additional paid in capital | 1400000 | |
| Current assets | 12000 | |
| Long term assets | 103000 | |
| Goodwill | 15000 | |
| To current liabilities | 9000 | |
| To long term debt | 61000 | |
| To Share capital | 20000 | |
| To Additional paid in capital | 40000 |
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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
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...
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help me
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...
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