Billiken company created blues company as a wholly owned shubidiary by transferring assets and liabilities to blues in exchange for its common stock. blues recorded the following entry at the time the assets and liabilities were received:
cash 3000
accountings receivable 16,000
inventory 27,000
land 9,000
buildings 70,000
equipment 60,000
accounts payable 14,000
Accumulated depreciation-building 21,000
accumulated depreciation-equipment 12,000
common stock 40,000
additional paid in capital 98,000
required
a. what was billiken's book value of the total assets transferred to blues?
b. what amount did billiken report as an investment in blues after the transfer?
c. how many shares of $5 par value common stock didi blues issues?
d. what effect did the transfer have on the total assets reported by billiken?
e what impact did the transfer have on the amount that the consolidated entity reported as shares outstanding?