Pat Corporation acquired 14,000 Shares of Sci Corporation (Graded A+) - use as a guide only - 27456

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Unit 4 Assignment Problem Data

                 
                       

1). Pat Corporation acquired 14,000 Shares of Sci Corporation for a price of $50 per share on Jan. 1, 2009.

     

      Sci Corp. had 20,000 shares outstanding as of Jan. 1 2009

           

      At Jan. 1 2009 Sci's stockholders' equity consisted of $250,000 in capital stock and $150,000 in retained earnings.

   

2). Sci Corp.'s equipment was undervalued by $70,000 at the date of Pat's acquisition.

       

      Sci's building was also undervalued by $100,000 at the date of Pat's acquisition.

         

      The remaining usefull life of the equipment was 5 years  and the building 20 years at the date of acquisition.

   

      All remaining assets and liabilities of Sci have a fair value equal to book value.

         

3.) At Dec. 31, 2010, Sci has an account payable balance of $15,000 owed to Pat. Also on that date, Pat owes Sci $25,000 on a note payable.

  Complete question could not be posted because of excel format.                    
         
Solution Description

A+++++++++

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Consolidated Unit 4 (1).xlsx
Consolidated Un...