Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. parkovash, incorporated, obtained 100 percent of s

Parkovash, Incorporated, obtained 100 percent of Salerno Company's common stock on January 1,2023, by issuing...

50.1K

Verified Solution

Question

Accounting

Parkovash, Incorporated, obtained 100 percent of Salerno Company's common stock on January 1,2023, by issuing 9,300 shares of $10 par value common stock. Parkovash's shares had a $15 per share fair value. On that date, Salerno reported a net book value of $96,650. However, its equipment (with a 5-year remaining life) was undervalued by $6,450 in the company's accounting records. Also, Salerno had developed computer software with an assessed value of $36,400, although no value had been recorded on Salerno's books. The computer software had an estimated remaining useful life of 10 years.
The following balances come from the individual accounting records of these two companies as of December 31,2023:
\table[[Items,Parkovash,Salerno],[Revenues,$(690,000),$(371,000)
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Northland W Assignment 12 Conic oints DETAILS h the equation with the graph 4x 2...

Basic Math
Q

Boeing had supply and quality issues leading to production delays in the development of their 787...

Operations Management
Q

Find the pH during the titration of 20.00 mL of 0.2830 M benzoic acid, C6H5COOH (Ka =...

Chemistry
Q

A diamagnetic object is hung by a thread from a very sensitive spring balance between...

Physics
Q

Which choice shows the expression x 6x 8 in factored form 2 x 4 x...

Basic Math
Q

for the planets Jupiter and Saturn to determine the truth values of the simple statements...

Basic Math
Q

A person wants to purchase both parcels of land shown in the figure to the...

Basic Math
Q

selected location in Calil 27 Probabilities in Olympic Olympic curling the so shown here consists...

Statistics
Q

2 Camila has 7 less than 4 times Mateo s number of Pok mon Trading...

Algebra
Q

A company has the choice of either selling 600 apples or processing them into applesauce....

Accounting
Q

QUESTION 6 At the beginning of January, 2014, Wise Company had a balance in its...

Accounting
Q

A U.S. investor obtains Brazilian real (BRL) when the exchange is worth BRL5.0000/$ and invests...

Finance