Question

Rockport Refinery acquired all the outstanding common stock of Stellman Corporation for $68,000 in cash. The book values and fair values of Stellman's assets and liabilities were as follows:

Book Value Fair Value
Current assets $ 24,000 $ 30,000 Property, plant, and equipment 44,000 56,000 Other assets 4,000 6,000 Current liabilities 16,000 16,000 Long-term liabilities 24,000 22,000

Answer 1

Current assets $ 24,000 $ 30,000 Property, plant, and equipment 44,000 56,000 Other assets 4,000 6,000 Current liabilities 16,000 16,000 Long-term liabilities 24,000 22,000