Solution-Determine amount should trudata report as common

Determine amount should trudata report as common stock

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Reference no: EM132467629

On July 1, TruData Company issues 10,000 shares of its common stock with a $5 par value and a $50 fair value in exchange for all of Webstat Company's outstanding voting shares. Webstat's precombination book and fair values are shown below along with book values for TruData's accounts

	TruData Book Values	Webstat Book Values	Webstat Fair Values
Revenues (1/1 to 7/1)	$ (288,200)	$ (172,000)
Expenses (1/1 to 7/1)	192,000	86,000
Retained earnings, 1/1	(134,000)	(140,000)
Cash and receivables	168,000	76,000	$ 76,000
Inventory	186,000	148,000	170,000
Patented technology (net)	228,000	178,000	202,000
Land	382,000	198,000	238,000
Buildings and equipment (net)	102,000	90,000	90,000
Liabilities	(532,000)	(370,000)	(346,000)
Common stock	(294,000)	(62,000)
Additional paid-in capital	(9,800)	(32,000)

Question 1: On its acquisition-date consolidated balance sheet, what amount should TruData report as common stock?

Reference no: EM132467629

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Determine amount should trudata report as common stock

Reference no: EM132467629

Reference no: EM132467629

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