Pool Industries Paid $540,000 to Purchase 75% of the Outstanding

question 1

Essay

Pool Industries paid $540,000 to purchase 75% of the outstanding stock of Swimmin Corporation, on December 31, 2014. Any excess fair value over the identified assets and liabilities is attributed to goodwill. The following year-end information was available just before the purchase:
Using the data provided above, assume that Pool decided rather than paying $540,000 cash, Pool issued 10,000 shares of their own stock to the owners of Swimmin. At the time of issue, the $10 par value stock had a market value of $60 per share.
Required: Prepare Pool's consolidated balance sheet on December 31, 2014.

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Definitions:

Scholasticism

The Gothic school of philosophy in which scholars applied Aristotle’s system of rational inquiry to the interpretation of religious belief.

Middle Class

A social class that falls between the working class and the upper class, often defined by moderate income levels, education, and professional occupations.

Perpendicular Style

A phase of Gothic architecture prevalent in England during the late medieval period, noted for its emphasis on vertical lines and detailed decorations.

England

A country that is part of the United Kingdom, known for its rich history, cultural heritage, and as the birthplace of the English language.