Finance and Accounting, Coursework
Paul, Inc. acquired 100% of Ernie’s Inc. net assets on January 1, 2009 for $300,000 in cash and paid 10,000 for acquisition cost. The following facts relate to the acquisitions:
Land and Building, Net
Total Liabilities and Stockholders’ Equity
Fair value of acquired net assets:
Land and building
Determine and provide the proper accounting entry to record the subsidiary on Paul’s books on January 1, 2009 as if Ernie was dissolved.
Determine and provide the proper accounting entry to record the subsidiary on Ernie’s books on January 1, 2009 as if Ernie was dissolved.
While acquisitions are often friendly, there are numerous occasions when a party does not want to be acquired. Discuss possible defensive strategies that firms can implement to fend off a hostile takeover attempt.
Please submit your assignment.
Students should complete the following items for this assignment:
Record the entry for investment in Paul’s books 33%
Record the entry for investment in Ernie’s books 33%
Explain possible defensive strategies that firms can implement to fend off a hostile takeover attempt 34%