Bullen Inc. acquired 100% of the voting common stock of Vicker Inc. on January 1

Question

Bullen Inc. acquired 100% of the voting common stock of Vicker Inc. on January 1, 20X1. Assume that Bullen issued 12,000 shares of common stock with a $5 par value and a $47 fair value to obtain al of Vicker's outstanding stock. The book value and fair value of a Vicker's accounts on that date (prior to creating the combination) follow, along with the book value of Bullen's accounts (also prior to acquisition):

What will be total consolidated assets?

What will be total consolidated equity?

Bullen Book Value Vicker Book Value Vicker Fair Value Retained earning, 1/1/X1 250,000 240,000 70,000 Cash and receivable 170,000 70,000 210,000 Inventory 230,000 170,000 210,000 Land 280,000 220,000 240,000 Building (net) 480,000 240,000 270,000 Equipment (net) 120,000 90,000 90,000 Liabilities 650,000 430,000 420,000 Common Stock 360,000 80,000 Additional paid-in capital 20,000 40,000

Explanation / Answer

Total Consolidated assets will be Bullen Vicker Total Cash and receivables 170000 70000 240000 Inventory 230000 170000 400000 Land 280000 220000 500000 Building 480000 240000 720000 Equipment 120000 90000 210000 Total Consolidated assets will be 1280000 790000 2070000 Total Consolidated equity will be Retained earnings 250000 240000 490000 Common stock 360000 80000 440000 Additional Paid in vcapital 20000 40000 60000 Total Consolidated equity will be 630000 360000 990000

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