1. What requirements must be satisfizo if a foreignsubsidiary is to be consolidated?
2. Under the current rate method, how are assets andliabilities that are stated in foreign currencytranslated?
1. What requirements must be satisfizo if a foreignsubsidiary is to be consolidated?
2. Under the current rate method, how are assets andliabilities that are stated in foreign currencytranslated?
Related questions
Grant Company acquired all of Bedford Corporation's assets andliabilities on January 1, 20X2, in a business combination. At thatdate, Bedford reported assets with a book value of $642,000 andliabilities of $376,000. Grant noted that Bedford had $43,000 ofcapitalized research and development costs on its books at theacquisition date that did not appear to be of value. Grant alsodetermined that patents developed by Bedford had a fair value of$140,000 but had not been recorded by Bedford. Except for buildingsand equipment, Grant determined the fair value of all other assetsand liabilities reported by Bedford approximated the recordedamounts. In recording the transfer of assets and liabilities to itsbooks, Grant recorded goodwill of $107,000. Grant paid $534,000 toacquire Bedford's assets and liabilities. If the book value ofBedford's buildings and equipment was $348,000 at the date ofacquisition, what was their fair value? |
