Balance Sheet Information for Hope Corporation at January 1,2016,is Summarized

question 17

Essay

Balance sheet information for Hope Corporation at January 1,2016,is summarized as follows:
Hope's assets and liabilities are fairly valued except for plant assets that are undervalued by $200,000.On January 2,2016,Robin Corporation issues 80,000 shares of its $10 par value common stock for all of Hope's net assets and Hope is dissolved.Market quotations for the two stocks on this date are:
Robin pays the following fees and costs in connection with the combination:
Required:
A.Calculate Robin's investment cost of Hope Corporation.
B.Calculate any goodwill from the business combination.

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Definitions:

Dominant Gene

A gene that expresses its phenotype over another gene, the recessive gene, when they are both present in a pair of alleles.

Recessive Gene

A gene that produces its characteristic phenotype only when its allele is identical, otherwise being masked by the effects of a dominant gene.

Temperament

An individual's innate disposition or behavioral style and characteristic emotional response.

Chess and Thomas

Researchers known for their work on temperament, particularly identifying three basic types of temperament in infants: easy, difficult, and slow-to-warm-up.