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    On July 1 2018 Truman Company Acquired A 70 Percent

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    Amit Pandey
    Truman Company acquired a 70% interest in Atlanta Company on July 1, 2018 in exchange for $720,000 in cash and equity. The remaining 30% of Atlanta's shares were valued at $290,000 before and after the acquisition. Truman assigned a $100,000 fair value to a recently developed patent by Atlanta, though it was not previously recorded. The patent is expected to have a 5-year remaining life.

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    On July 1 2018 Truman Company Acquired A 70 Percent

    Uploaded by

    Amit Pandey
    70 views1 page
    Truman Company acquired a 70% interest in Atlanta Company on July 1, 2018 in exchange for $720,000 in cash and equity. The remaining 30% of Atlanta's shares were valued at $290,000 before and after the acquisition. Truman assigned a $100,000 fair value to a recently developed patent by Atlanta, though it was not previously recorded. The patent is expected to have a 5-year remaining life.

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    On July 1 2018 Truman Company Acquired a 70 Percent

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    Truman Company acquired a 70% interest in Atlanta Company on July 1, 2018 in exchange for $720,000 in cash and equity. The remaining 30% of Atlanta's shares were valued at $290,000 before and after the acquisition. Truman assigned a $100,000 fair value to a recently developed patent by Atlanta, though it was not previously recorded. The patent is expected to have a 5-year remaining life.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    70 views1 page

    On July 1 2018 Truman Company Acquired A 70 Percent

    Uploaded by

    Amit Pandey
    Truman Company acquired a 70% interest in Atlanta Company on July 1, 2018 in exchange for $720,000 in cash and equity. The remaining 30% of Atlanta's shares were valued at $290,000 before and after the acquisition. Truman assigned a $100,000 fair value to a recently developed patent by Atlanta, though it was not previously recorded. The patent is expected to have a 5-year remaining life.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    Solved: On July 1 2018 Truman Company acquired a 70

    percent

    On July 1, 2018, Truman Company acquired a 70 percent interest in Atlanta Company in


    exchange for consideration of $720,000 in cash and equity securities. The remaining 30 percent
    of Atlanta's shares traded closely near an average price that totaled $290,000 both before and
    after Truman's acquisition.

    In reviewing its acquisition, Truman assigned a $100,000 fair value to a patent recently
    developed by Atlanta, even though it was not recorded within the financial records of the
    subsidiary. This patent is anticipated to have a remaining life of five years.

    The following financial information is available for these two companies for 2018. In addition, the
    subsidiary's income was earned uniformly throughout the year. The subsidiary declared
    dividends quarterly.

    Answer each of the following:

    a. How did Truman allocate Atlanta's acquisition-date fair value to the various assets acquired
    and liabilities assumed in the combination?

    b. How did Truman allocate the goodwill from the acquisition across the controlling and non-
    controlling interests?

    c. How did Truman derive the Investment in Atlanta account balance at the end of 2018?

    d. Prepare a worksheet to consolidate the financial statements of these two companies as of


    December 31, 2018. At year-end, there were no intra-entity receivables or payables.

    On July 1 2018 Truman Company acquired a 70 percent

    ANSWER
    https://solvedquest.com/on-july-1-2018-truman-company-acquired-a-70-percent/

    Reach out to [email protected] for enquiry.


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