Salem Co Had the Following Account Balances as of December 1

question 27

Essay

Salem Co. had the following account balances as of December 1, 2010: Bellington Inc. transferred $1.7 million in cash and 12,000 shares of its newly issued $30 par value common stock (valued at $90 per share) to acquire all of Salem's outstanding common stock.
Assume that Bellington paid cash of $2.8 million. No stock is issued. An additional $50,000 is paid in direct combination costs.
Required:
For Goodwill, determine what balance would be included in a December 1, 2010 consolidation.

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Definitions:

Louis XIV

A monarch of the House of Bourbon who reigned as King of France from 1643 until his death in 1715, known for his absolute monarchy and the phrase "L'état, c'est moi."

Tribal Societies

Groups of people organized around kinship or other forms of obligation and identified by cultural and social unity, often living in traditional, pre-industrial societies.

Feudal Societies

Societies structured around a strict hierarchical system of lords, vassals, and serfs, prevalent in medieval Europe, where lands were held in exchange for service.

Traditional Authority

A form of leadership where power is legitimized by customs and traditional beliefs passed down through generations, often seen in monarchies or tribes.