Lambert Enterprises Acquired Callahan Company for $700,000 December 31, 2011

question 16

Essay

Lambert Enterprises acquired Callahan Company for $700,000 December 31, 2011. This amount exceeded the recorded value of Callahan Company's net assets by $150,000 on the acquisition date. The entire excess of cost over the book value of the net assets related to a piece of equipment owned by Callahan that had a remaining life of five years as of the acquisition date. The companies reported the following amounts for the 2010 and 2011:

Prepare the pro forma information for this acquisition required by SFAS No. 141.

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Definitions:

Neurotransmitters

Chemical messengers in the body that transmit signals between neurons or from neurons to muscles, playing key roles in various physiological processes and behaviors.

Myoneural Junction

The site at which a nerve cell communicates with a muscle cell, enabling muscle contraction and movement.

Muscle Movement

The physiological process by which muscles contract and relax, enabling the body to move.

Tibia and Fibula

The two long bones in the lower leg, where the tibia, or shinbone, supports most of the body's weight and the fibula, or calf bone, supports muscles and stabilizes the ankle.