question archive At January 1, Danders Corporation pays $200,000 cash and also issue 18,000 shares of $10 par common stock with a market value $330,000 for all the outstanding common shares of Harrison Corporation
At January 1, Danders Corporation pays $200,000 cash and also issue 18,000 shares of $10 par common stock with a market value $330,000 for all the outstanding common shares of Harrison Corporation
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At January 1, Danders Corporation pays $200,000 cash and also issue 18,000 shares of $10 par common stock with a market value $330,000 for all the outstanding common shares of Harrison Corporation. In addition, Danders pays $30,000 for registering and issuing the 18,000 shares and $70,000 for the other direct costs of the business combination Summarized balance sheet information for the companies immediately before the merger is as follows (in thousands) :
Danders Harrison Harrison
Book Value Book Value Fair Value
Cash $ 350,000 $40,000 $ 40,000
Inventories 120,000 80,000 100,000
Other current assets 30,000 20,000 20,000
Plant assets-net 260,000 180,000 280,000
Total Assets $,760,000 $ 320,000 $ 440,000
Current liabilities $160,000 $30,000 $ 30,000
Other liabilities 80,000 50,000 40,000
Common stock, $ 10 par 420,000 200,000
Retained Earnings 100,000 40,000
Total Liabi & Equities $760,000 $ 320,000
Required:
1) Prepare Dander's general journal entry for the acquisition of Harrison, assuming that
Harrison dissolves as a separate legal entity. (6pts)
2) Prepare Dander's general journal entry for the acquisition of Harrison assuming that
Harrison continues as a separate legal entity (6pts
Option 1
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