The writer is very fast, professional and responded to the review request fast also. Thank you.
Bargain purchase, allocation schedule, and balance sheet
The balance sheets for Pablo Corporation and Diego Corporation at December 31, 2016 are summarized
as follows (in thousands):
Pablo Corporation Diego Corporation
Book Value Fair Value Book Value Fair Value
Cash $100 $100 $40 $40
Receivables-net 50 50 30 30
Inventories 130 150 80 100
Land 50 100 30 50
Buildings-net 150 200 70 100
Equipment-net 100 150 50 75
Total assets $580 $750 $300 $395
Accounts payable $ 80 $ 80 $ 50 $ 50
Other liabilities 100 90 75 45
Common stock, $10 par 200 100
Other paid-in capital 100 25
Retained earnings 100 50
Total equities $580 $300
On January 1, 2017, Pablo Corporation acquired all of Diego Corporation’s outstanding common stock
for $250,000. Pablo paid $50,000 in cash and issued a five-year, 10 percent note for the balance. Diego
1. Prepare schedule to show how the investment cost is allocated to identifiable assets and liabilities.
2. Prepare balance sheet for Pablo Corporation on January 1, 2017, immediately after the acquisition
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more