Jernigan Corp

question 42

Essay

Jernigan Corp. had the following account balances at 12/1/20:
Several of Jernigan's accounts have fair values that differ from book value. The fair values are: Land - $480,000; Building - $720,000; Inventory - $336,000; and Liabilities - $396,000. Inglewood Inc. acquired all of the outstanding common shares of Jernigan by issuing 20,000 shares of common stock having a $6 par value per share, but a $66 fair value per share. Stock issuance costs amounted to $12,000.Required:Prepare a fair value allocation and goodwill schedule at the date of the acquisition.

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Definitions:

Hazardous Waste

Hazardous Waste refers to waste materials that can pose a danger to human health or the environment due to its toxic, chemically reactive, flammable, or corrosive properties.

CRTs

Cathode Ray Tubes, a technology used in traditional television and computer screens that projects images by directing a beam of electrons onto a phosphorescent screen.

MAC Address

A hardware identification number that uniquely identifies each device on a network, ensuring that data packets reach the correct destination.

Wireless Access Point

A device that receives and transmits data from multiple computers that have wireless NICs installed. The access point can be a standalone unit or can be integrated into an ADSL router.