Skip to Content

Advanced Financial Accounting

Submitted by • December 18, 2018

Assignment 4: Final Project Roberts Corporation and William Company (Continuing Project)Assume instead that on January 1, 2009, Roberts Corporation acquired 80 percent of the outstanding voting stock of William Company in exchange for $1,200,000 cash. At that time, although William's book value was $925,000, Roberts assessed William's total business fair value at $1,500,000.The book values of William's individual assets and liabilities approximated their fair values at the acquisition date, except for the equipment account, which was undervalued by $350,000. The undervalued equipment had a five-year remaining life at the acquisition date. Any remaining excess fair value was attributed to goodwill. No goodwill impairments have occurred.During its first year of combined operations, William earned net income of $180,000 and paid dividends totaling $30,000. William immediately began supplying inventory to Roberts. Below are the details of the inter company inventory sales for the current y

Voted by:
Voted by Simon Brooke

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>