Balance Sheet Information for Sphinx Company at January 1,2013,is Summarized $\quad$

question 31

Essay

Balance sheet information for Sphinx Company at January 1,2013,is summarized as follows:
Sphinx's assets and liabilities are fairly valued except for plant assets that are undervalued by $50,000.On January 2,2013,Pyramid Corporation issues 20,000 shares of its $10 par value common stock for all of Sphinx's net assets and Sphinx is dissolved.Market quotations for the two stocks on this date are:
Pyramid common: $\quad$$\quad$$\quad$ $28.00
Sphinx common: $\quad$$\quad$$\quad$ $19.50 Pyramid pays the following fees and costs in connection with the combination:
Required:
1.Calculate Pyramid's investment cost of Sphinx Corporation.
2.Calculate any goodwill from the business combination.

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Definitions:

Exception Thrown

A term used in programming to describe an event that occurs during the execution of a program that disrupts the normal flow of instructions.

Class Exception

An object or a class in programming that encapsulates an error event that can occur within a program.

Constructors

Special methods in object-oriented programming that are used to initialize new objects.

InputMismatchException

An exception thrown by scanner methods in Java to indicate that the retrieved data does not match the expected type.