Finance and Accounting, Coursework

Finance and Accounting, Coursework.

Finance and Accounting, Coursework Paul, Inc. acquired 100% of Ernie’s Inc. net assets on January 1, 2009 for $300,000 in cash and paid 10,000 for acquisition cost. The following facts relate to the acquisitions: Accounts Receivable 50,000 Inventory 80,000 Equipment, Net 50,000 Land and Building, Net 120,000 Total Assets $300,000 Bonds Payable 90,000 Common stock 100,000 Retained earnings 110,000 Total Liabilities and Stockholders’ Equity $300,000 Fair value of acquired net assets: Accounts receivable $50,000 Inventory 100,000 Equipment 30,000 Land and building 180,000 Customer list 30,000 Bonds payable 100,000 Determine and provide the proper accounting entry to record the subsidiary on Paul’s books on January 1, 2009 as if Ernie was dissolved. Determine and provide the proper accounting entry to record the subsidiary on Ernie’s books on January 1, 2009 as if Ernie was dissolved. While acquisitions are often friendly, there are numerous occasions when a party does not want to be acquired. Discuss possible defensive strategies that firms can implement to fend off a hostile takeover attempt. Please submit your assignment. Grading Criteria Students should complete the following items for this assignment: Record the entry for investment in Paul’s books 33% Record the entry for investment in Ernie’s books 33% Explain possible defensive strategies that firms can implement to fend off a hostile takeover attempt 34%

Finance and Accounting, Coursework

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