Financial Accounting, 10th Edition. The Tenth Edition of Financial Accounting continues to present a clear and comprehensive introduction. Solutions Manual.

Assignment of Acquisition Costs Troy Company notified Kline Company’s shareholders that it was interested in purchasing controlling ownership of Kline and offered to exchange one share of Troy’s common stock for each share of Kline Company submitted by July 31, 20X7. At the time of the offer, Troy’s shares were trading for $35 per share and Kline’s shares were trading at $28. download free Cycle Country Rough Cut Mower Parts Manual. 2015 Mercury Mariner Service Manual download free. Mechanics Of Materials Si Solutions Manual download there.

Troy acquired all of the shares of Kline prior to December 31, 20X7, and transferred Kline’s assets and liabilities to its books. In addition to issuing its shares, Troy paid a finder’s fee of $200,000, stock registration and audit fees of $60,000, legal fees of $90,000 for transferring Kline’s assets and liabilities to Troy, and $370,000 in legal fees to settle litigation brought by Kline’s shareholders who alleged that the offering price was below the per-share fair value of Kline’s net assets. Required Troy Company’s vice president of finance has asked you to review the current accounting literature, including authoritative pronouncements, and prepare a memo reporting the required treatment of the additional costs at the time Kline Company was acquired. Bernette Manual download free. Support your recommendations with citations and quotations from the authoritative financial reporting standards or other literature. Assignment of acquisition costs: Memo: To: Vice President of T Company From: AAA, CPA Re: Recording the cost of acquisition of Business Combinations: On reviewing the accounting statements, it was reviewed that T Company acquired the ownership of K Company, by transferring the assets and liabilities. According to the accounting standards the requirement of the acquisition is that all the direct costs involved in buying another organization will be stated as portion of the total cost which is acquired by the organization. The cost involved in issuing preferred and common stock in a business combination requires to be stated as reduction in the fair value of the securities.