Current assets $ 90,000 Building and equipment 250,000 Unpatented technology 25,000 Research and development asset 45,000 Goodwill 70,000 Total assets $480,000 14. C Value of shares issued (51,000 × $3) $153,000 Par value of shares issued (51,000 × $1) 51,000 Additional paid-in capital (new shares) $102,000 Additional paid-in capital (existing shares) 90,000 Consolidated additional paid-in capital (fair value) $192,000 At the acquisition date, the parent no change to retained earnings. 15. B Consideration transferred (fair value) $400,000 Book value of subsidiary (assets minus liabilities) (300,000) Fair value in excess of book value 100,000 Allocation of excess fair over book value identified with specific accounts: Inventory 30,000 Patented technology 20,000 Land 25,000 Long-term liabilities 10,000 Goodwill $15,000 16. D TruData patented technology $230,000 Webstat patented technology (fair value) 200,000 Acquisition-date consolidated balance amount $430,000 17. C TruData common before acquisition $300,000 Common issued (par value) 50,000 Acquisition-date consolidated balance sheet amount $350,000 18. B TruData’s 1/1 retained earnings $130,000 TruData’s income (1/1 to 7/1) 80,000 Acquisition-date consolidated balance sheet amount $210,000 19. a. An intangible acquired in a business combination is recognized as an asset apart from goodwill if it arises from contractual or other legal rights (regardless of whether those rights are transferable or separable from the acquired enterprise or from other rights and obligations). If an intangible asset does not arise from contractual or other legal rights, it shall be recognized as an asset apart from goodwill only if it is separable, that is, it
Current assets $ 90,000 Building and equipment 250,000 Unpatented technology 25,000 Research and development asset 45,000 Goodwill 70,000 Total assets $480,000 14. C Value of shares issued (51,000 × $3) $153,000 Par value of shares issued (51,000 × $1) 51,000 Additional paid-in capital (new shares) $102,000 Additional paid-in capital (existing shares) 90,000 Consolidated additional paid-in capital (fair value) $192,000 At the acquisition date, the parent no change to retained earnings. 15. B Consideration transferred (fair value) $400,000 Book value of subsidiary (assets minus liabilities) (300,000) Fair value in excess of book value 100,000 Allocation of excess fair over book value identified with specific accounts: Inventory 30,000 Patented technology 20,000 Land 25,000 Long-term liabilities 10,000 Goodwill $15,000 16. D TruData patented technology $230,000 Webstat patented technology (fair value) 200,000 Acquisition-date consolidated balance amount $430,000 17. C TruData common before acquisition $300,000 Common issued (par value) 50,000 Acquisition-date consolidated balance sheet amount $350,000 18. B TruData’s 1/1 retained earnings $130,000 TruData’s income (1/1 to 7/1) 80,000 Acquisition-date consolidated balance sheet amount $210,000 19. a. An intangible acquired in a business combination is recognized as an asset apart from goodwill if it arises from contractual or other legal rights (regardless of whether those rights are transferable or separable from the acquired enterprise or from other rights and obligations). If an intangible asset does not arise from contractual or other legal rights, it shall be recognized as an asset apart from goodwill only if it is separable, that is, it