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Mathematics, 27.07.2020 09:01 laladance123

Haynes, Inc., obtained 100 percent of Turner Company’s common stock on January 1, 2017, by issuing 11,800 shares of $10 par value common stock. Haynes’s shares had a $15 per share fair value. On that date, Turner reported a net book value of $133,850. However, its equipment (with a five-year remaining life) was undervalued by $5,650 in the company’s accounting records. Also, Turner had developed a customer list with an assessed value of $37,500, although no value had been recorded on Turner’s books. The customer list had an estimated remaining useful life of 10 years.

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