Fine Co Issued Its Common Stock in Exchange for the Common

question 116

Essay

Fine Co. issued its common stock in exchange for the common stock of Dandy Corp. in an acquisition. At the date of the combination, Fine had land with a book value of $480,000 and a fair value of $620,000. Dandy had land with a book value of $170,000 and a fair value of $190,000.Required:What was the consolidated balance for Land in a consolidated balance sheet prepared at the date of the acquisition combination?

---

Definitions:

Tacit Knowledge

Knowledge that is difficult to transfer to another person by writing it down or verbalizing it, often gained through personal experience and context.

Componential Intelligence

A component of Sternberg's triarchic theory of intelligence that entails analytical tasks, such as problem-solving and logical reasoning.

Experiential Intelligence

Intelligence that involves the ability to use past personal experiences to solve new problems.

Contextual Knowledge

Understanding that is informed by and applied within the context in which it occurs, reflecting the situation, environment, or specific circumstances.