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?

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Definitions:

Appraise

To assess the value, quality, or significance of something, often for the purpose of making a decision.

Stressful

Relating to or causing stress, which is a physical or psychological response to demands or pressures.

Stressed-Out

A state of being overwhelmed or excessively worried due to pressures, demands, or challenges, often leading to physical and emotional strain.

Highly Subjective

A characteristic of perceptions, judgments, or experiences that are strongly influenced by personal feelings, tastes, or opinions.