Jaynes Inc. acquired all of Aaron Co's common stock on January
Question # 00170261
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Updated on: 01/12/2016 05:49 AM Due on: 02/11/2016
Jaynes Inc. acquired all of Aaron Co's common stock on January 1, 2010, by using 11,000 Shares of $1 par value common stock. Jaynes' shares had a $17 per share fair value. On that date, Aaron reported a net book value of $120,000. However, its equipment (with a five-year remaining life) was undervalued by $6,000 in the company's accounting records. Any excess of consideration transfered over fair value of assets and liabilities is assigned to an unrecorded patent to be amortized over ten years.
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Rating:
/5
Solution: Jaynes Inc. acquired all of Aaron Co's common stock on January