Missoula Company acquires 100% of the outstanding voting shares of Clearwater Company on January 1, 2017. Before the acquisition, the balance sheets of the two companies are as follows:
Missoula issues 50,000 shares of its common stock with a market value of $3,840 thousand to the owners of Clearwater in return for their 100,000 shares of Clearwater Company common stock. The assets of Clearwater Company have a fair value in excess of book value of $480 thousand.
Prepare a consolidated balance sheet for the Missoula - Clearwater Company on January 1, 2017.

Question

Missoula Company acquires 100% of the outstanding voting shares of Clearwater Company on January 1, 2017. Before the acquisition, the balance sheets of the two companies are as follows:
  Missoula issues 50,000 shares of its common stock with a market value of $3,840 thousand to the owners of Clearwater in return for their 100,000 shares of Clearwater Company common stock. The assets of Clearwater Company have a fair value in excess of book value of $480 thousand.
Prepare a consolidated balance sheet for the Missoula - Clearwater Company on January 1, 2017.

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The Answer of Missoula Company acquires 100% of the outstanding voting shares of Clearwater Company on January 1, 2017. Before the acquisition, the balance sheets of the two companies are as follows:
  Missoula issues 50,000 shares of its common stock with a market value of $3,840 thousand to the owners of Clearwater in return for their 100,000 shares of Clearwater Company common stock. The assets of Clearwater Company have a fair value in excess of book value of $480 thousand.
Prepare a consolidated balance sheet for the Missoula - Clearwater Company on January 1, 2017.

Missoula Company Acquires 100% of the Outstanding Voting Shares of Clearwater