REFERENCE: Ref.02_10
The financial statements for Jode Inc.and Lakely Corp. ,just prior to their combination,for the year ending December 31,2009,follow.Lakely's buildings were undervalued on its financial records by $60,000.
SHAPE \* MERGEFORMAT
On December 31,2009,Jode issued 54,000 new shares of its $10 par value stock to the owners of Lakely in exchange for all of the outstanding shares of that company.Jode's shares had a fair value on that date of $35 per share.Jode paid $34,000 to an investment bank for assisting in the arrangements.Jode also paid $24,000 in stock issuance costs.This combination is accounted for as an acquisition.
-Required:
Determine consolidated Net Income for at December 31,2009.

Question

REFERENCE: Ref.02_10
The financial statements for Jode Inc.and Lakely Corp. ,just prior to their combination,for the year ending December 31,2009,follow.Lakely's buildings were undervalued on its financial records by $60,000.
SHAPE \* MERGEFORMAT
  On December 31,2009,Jode issued 54,000 new shares of its $10 par value stock to the owners of Lakely in exchange for all of the outstanding shares of that company.Jode's shares had a fair value on that date of $35 per share.Jode paid $34,000 to an investment bank for assisting in the arrangements.Jode also paid $24,000 in stock issuance costs.This combination is accounted for as an acquisition.
-Required:
Determine consolidated Net Income for at December 31,2009.

Quizplus · Accepted Answer

The Answer of REFERENCE: Ref.02_10
The financial statements for Jode Inc.and Lakely Corp. ,just prior to their combination,for the year ending December 31,2009,follow.Lakely's buildings were undervalued on its financial records by $60,000.
SHAPE \* MERGEFORMAT
  On December 31,2009,Jode issued 54,000 new shares of its $10 par value stock to the owners of Lakely in exchange for all of the outstanding shares of that company.Jode's shares had a fair value on that date of $35 per share.Jode paid $34,000 to an investment bank for assisting in the arrangements.Jode also paid $24,000 in stock issuance costs.This combination is accounted for as an acquisition.
-Required:
Determine consolidated Net Income for at December 31,2009.

REFERENCE: Ref.02_10 The Financial Statements for Jode Inc.and Lakely Corp. ,Just Prior