Jackson Company acquires 100% of the stock of Clark Corporation on January 1, 2020, for $4,100 cash. As of that date Clark has the following trial balance: Net income and dividends reported by Clark for 2020 and 2021 follow: The fair value of Clark's net assets that differ from their book values are listed below: Any excess of consideration transferred over fair value of net assets acquired is considered goodwill with an indefinite life.Compute the amount of Clark's long-term liabilities that would be reported in a December 31, 2021, consolidated balance sheet.

Question

Jackson Company acquires 100% of the stock of Clark Corporation on January 1, 2020, for $4,100 cash. As of that date Clark has the following trial balance:  Net income and dividends reported by Clark for 2020 and 2021 follow:  The fair value of Clark's net assets that differ from their book values are listed below:  Any excess of consideration transferred over fair value of net assets acquired is considered goodwill with an indefinite life.Compute the amount of Clark's long-term liabilities that would be reported in a December 31, 2021, consolidated balance sheet.

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The Answer of Jackson Company acquires 100% of the stock of Clark Corporation on January 1, 2020, for $4,100 cash. As of that date Clark has the following trial balance:  Net income and dividends reported by Clark for 2020 and 2021 follow:  The fair value of Clark's net assets that differ from their book values are listed below:  Any excess of consideration transferred over fair value of net assets acquired is considered goodwill with an indefinite life.Compute the amount of Clark's long-term liabilities that would be reported in a December 31, 2021, consolidated balance sheet.

Jackson Company Acquires 100% of the Stock of Clark Corporation