smyth company is acquired by radar corporation on july 1 2011 radar exchanges 60 000 4374258

Smyth Company is acquired by Radar Corporation on July 1, 2011. Radar exchanges 60,000 shares of its $5 par stock, with a fair value of $20 per share, for the net assets of Smyth Company. Radar incurs the following costs as a result of this transaction: Acquisition costs …………….. $25,000 Stock registration and issuance costs ……… 10,000 Total costs ………………. $35,000 The balance sheet of Smyth Company, on the day of the acquisition, is as follows: The appraised fair values as of July 1, 2011, is as follows: Inventory ……………… $250,000 Equipment …………….. 220,000 Land……………….. 180,000 Buildings ……………… 300,000 Current liabilities ………….. 80,000 Bonds payable …………… 410,000 Record the acquisition of Smyth Company on the books of Radar Corporation. View Solution:
Smyth Company is acquired by Radar Corporation on July 1

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