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question zooinc paid 268 000 to purchase 80 of the outstanding stock of birdcorporat 4288016

Question

ZooInc paid $268,000 to purchase 80% of the outstanding stock of BirdCorporation, on December 31, 2005. The following year-endinformation was available just before the purchase:

             

 

 

Zoo

 

Bird Book Value

 

Bird

Book Value

Fair

 

 

 

 

 

 

 

 

Value

 

 

 

 

 

 

 

Cash

$

378,000

$

40,000

$

40,000

 

 

 

 

 

 

 

Accounts Receivable

 

130,000

 

76,000

 

76,000

 

 

 

 

 

 

 

Inventory

 

240,000

 

50,000

 

55,000

 

 

 

 

 

 

 

Land

 

220,000

 

80,000

 

55,000

 

 

 

 

 

 

 

Plant and equipment-net

 

660,000

 

200,000

 

215,000

 

 

 

 

 

 

 

 

$

1,628,000

$

446,000

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts Payable

$

440,000

$

11,000

$

11,000

 

 

 

 

 

 

 

Bonds Payable

 

468,000

 

100,000

 

95,000

 

 

 

 

 

 

 

Capital stock, $10 parvalue

 

200,000

 

 

 

 

 

 

 

 

 

 

 

Capital stock, $15 parvalue

 

 

 

225,000

 

 

 

 

 

 

 

 

 

Additional paid-incapital

 

200,000

 

80,000

 

 

 

 

 

 

 

 

 

Retained earnings

 

320,000

 

30,000

 

 

 

 

 

 

 

 

 

 

$

1,628,000

$

446,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Required:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

Prepare Zoo’s consolidated balance sheet onDecember 31, 2005.

 

 

 

 

 

 

 

                           

 

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