Balance sheet information for Sphinx Company at January 1,2013,is summarized as follows:
Sphinx's assets and liabilities are fairly valued except for plant assets that are undervalued by $50,000.On January 2,2013,Pyramid Corporation issues 20,000 shares of its $10 par value common stock for all of Sphinx's net assets and Sphinx is dissolved.Market quotations for the two stocks on this date are:
Pyramid common:$\quad$$\quad$$\quad$$28.00
Sphinx common:$\quad$$\quad$$\quad$$19.50 Pyramid pays the following fees and costs in connection with the combination:
Required:
1.Calculate Pyramid's investment cost of Sphinx Corporation.
2.Calculate any goodwill from the business combination.

Question

Balance sheet information for Sphinx Company at January 1,2013,is summarized as follows:
  Sphinx's assets and liabilities are fairly valued except for plant assets that are undervalued by $50,000.On January 2,2013,Pyramid Corporation issues 20,000 shares of its $10 par value common stock for all of Sphinx's net assets and Sphinx is dissolved.Market quotations for the two stocks on this date are:
 Pyramid common:$\quad$$\quad$$\quad$$28.00
Sphinx common:$\quad$$\quad$$\quad$$19.50 Pyramid pays the following fees and costs in connection with the combination:
  Required:
1.Calculate Pyramid's investment cost of Sphinx Corporation.
2.Calculate any goodwill from the business combination.

Quizplus · Accepted Answer

The Answer of Balance sheet information for Sphinx Company at January 1,2013,is summarized as follows:
  Sphinx's assets and liabilities are fairly valued except for plant assets that are undervalued by $50,000.On January 2,2013,Pyramid Corporation issues 20,000 shares of its $10 par value common stock for all of Sphinx's net assets and Sphinx is dissolved.Market quotations for the two stocks on this date are:
 Pyramid common:$\quad$$\quad$$\quad$$28.00
Sphinx common:$\quad$$\quad$$\quad$$19.50 Pyramid pays the following fees and costs in connection with the combination:
  Required:
1.Calculate Pyramid's investment cost of Sphinx Corporation.
2.Calculate any goodwill from the business combination.

Balance Sheet Information for Sphinx Company at January 1,2013,is Summarized \quad

Balance Sheet Information for Sphinx Company at January 1,2013,is Summarized $\quad$