Question - Assume that, on December 31, 2015, Green Air issued 60,000 shares of common stock with a $1 par value and a $22 fair market value to obtain all of CorGas's outstanding stock.
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Account
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GreenAir Book Value @ 12/31/15
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CorGas Book Value @ 12/31/15
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CorGas Market Value @ 12/31/15
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Remaining Useful Life for Corgas's Assets
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Revenues
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$1,800,000
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$400,000
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|
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Expenses
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1,320,000
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300,000
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|
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R/E, 12/31/14
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16,000
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88,000
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|
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Cash
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240,000
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120,000
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$120,000
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Inventory
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96,000
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20,000
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18,000
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|
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Land
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160,000
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50,000
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280,000
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|
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Buildings (net)
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1,400,000
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480,000
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860,000
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10
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Equipment (net)
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820,000
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160,000
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100,000
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4
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Current Liabilities
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320,000
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92,000
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92,000
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Common Stock
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100,000
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100,000
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|
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Additional Paid in Capital
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1,800,000
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450,000
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1. Compute the consolidated balance for Land on the date of acquisition, 12/31/15.
2. Compute the consolidated balance for Cash on the date of acquisition, 12/31/15.
3. Compute the consolidated balance for Common Stock on the date of acquisition, 12/31/15.
4. Compute the consolidated balance for Retained Earnings on the date of acquisition, 12/31/15.
5. Compute the consolidated balance for Goodwill on the date of acquisition, 12/31/15.