McCoy has the following account balances as of December 31, 2020 before an acquisition transaction takes place. Inventory $125,000 Land 450,000 Buildings (net) 575,000 Common stock ($10 par) 600,000 Additional paid-in capital 300,000 Retained earnings 250,000 The fair value of McCoy’s Land and Buildings are $650,000 and $600,000, respectively. On December 31, 2020, Ferguson Company issues 30,000 shares of its $10 par value ($30 fair value) common stock in exchange for all of the shares of McCoy’s common stock. Ferguson paid $12,000 for costs to issue the new shares of stock. Before the acquisition, Ferguson has $800,000 in its common stock account and $350,000 in its additional paid-in capital account.What will the consolidated common stock account be as a result of this acquisition? A) $300,000. B) $800,000. C) $1,100,000. D) $1,400,000. E) $1,700,000.
Flynn acquires 100 percent of the outstanding voting shares…
Flynn acquires 100 percent of the outstanding voting shares of Macek Company on January 1, 2021. To obtain these shares, Flynn pays $400 cash (in thousands) and issues 10,000 shares of $20 par value common stock on this date. Flynn’s stock had a fair value of $36 per share on that date. Flynn also pays $15 (in thousands) to a local investment firm for arranging the acquisition. An additional $10 (in thousands) was paid by Flynn in stock issuance costs.The book values for both Flynn and Macek immediately preceding the acquisition follow. The fair value of each of Flynn and Macek accounts is also included. In addition, Macek holds a fully amortized trademark that still retains a $40 (in thousands) value. The figures below are in thousands. Any related question also is in thousands. Flynn, Inc Macek Company Book Value Fair Value Cash $ 900 $ 80 $ 80 Receivables 480 180 160 Inventory 660 260 300 Land 300 120 130 Buildings (net) 1,200 220 280 Equipment 360 100 75 Accounts payable 480 60 60 Long-term liabilities 1,140 340 300 Common stock 1,000 80 Additional paid-in capital 200 0 Retained earnings 1,080 480 What amount will be reported for consolidated cash after the acquisition is completed? A) $475,000. B) $500,000. C) $555,000. D) $580,000. E) $875,000.
You are going to be involved in the meningococcal immunizati…
You are going to be involved in the meningococcal immunization of students entering the University of Cincinnati. You are involved in
Sarah presents with left lateral knee pain and has some lock…
Sarah presents with left lateral knee pain and has some locking in full extension. There is tenderness over the medial joint line. When the knee is extended with the foot externally rotated and some valgus stress is applied, a click is noted. What is the most likely diagnosis?
Chase Incorporated sold $260,000 of its inventory to Bartlet…
Chase Incorporated sold $260,000 of its inventory to Bartlett Company during 2021 for $400,000. Bartlett sold $300,000 of this merchandise in 2021 with the remainder to be disposed of during 2022. Assume Chase owns 35% of Bartlett and accounts for its investment using the equity method. What journal entry will be recorded at the end of 2021 to defer the recognition of the investor’s share of the intra-entity gross profits? A) Equity in income of Bartlett $35,000 Investment in Bartlett 35,000 B) Investment in Bartlett $35,000 Equity in income of Bartlett $35,000 C) Equity in income of Bartlett $12,250 Investment in Bartlett $12,250 D) Investment in Bartlett $12,250 Equity in income of Bartlett $12,250 A) Entry A. B) Entry B. C) Entry C. D) Entry D. E) No entry is necessary.
A 68-year-old retired truck driver comes to your office for…
A 68-year-old retired truck driver comes to your office for evaluation of swelling in his legs. He is a smoker and has been taking medications to control his hypertension for the past 25 years. You are concerned about his risk for peripheral vascular disease. Which of the following tests are appropriate to order to initially evaluate for this condition?
The CAGE screening test for alcoholism is suggestive of dise…
The CAGE screening test for alcoholism is suggestive of disease if two of the responses are positive. What does the E in CAGE stand for:
A 38-year-old accountant comes to your clinic for evaluation…
A 38-year-old accountant comes to your clinic for evaluation of a headache. The throbbing sensation is located in the right temporal region and is an 8 on a scale of 1 to 10. It started a few hours ago, and she has noted nausea with sensitivity to light; she has had headaches like this in the past, usually less than one per week, but not as severe. She does not know of any inciting factors. There has been no change in the frequency of her headaches. She usually takes an over-the-counter analgesic and this results in resolution of the headache. Based on this description, what is the most likely diagnosis of the type of headache?
Oscar, Ltd. is a British subsidiary of a U.S. company. Osc…
Oscar, Ltd. is a British subsidiary of a U.S. company. Oscar’s functional currency is the pound sterling (£). The following exchange rates were in effect during 2021: Jan. 1 £ 1 = $ 1.58 June 30 £ 1 = $ 1.63 Dec. 31 £ 1 = $ 1.60 Weighted average rate for the year £ 1 = $ 1.56 Oscar reported sales of £1,200,000 during 2021. What amount (rounded) would have been included for this subsidiary in calculating consolidated sales? A) $1,896,000. B) $1,956,000. C) $1,872,000. D) $769,231. E) $750,000.
On December 1, 2021, Keenan Company, a U.S. firm, sold merch…
On December 1, 2021, Keenan Company, a U.S. firm, sold merchandise to Velez Company of Canada for 150,000 Canadian dollars (CAD). Collection of the receivable is due on February 1, 2022. Keenan purchased a foreign currency put option with a strike price of $0.97 (U.S.) on December 1, 2021. This foreign currency option is designated as a cash flow hedge. Relevant exchange rates follow: Date Spot Rate Option Premium December 1, 2021 $ 0.97 $ 0.05 December 31, 2021 $ 0.95 $ 0.04 February 1, 2022 $ 0.94 $ 0.03 Compute the fair value of the foreign currency option at December 1, 2021. A) $6,000. B) $4,500. C) $3,000. D) $7,500. E) $1,500.