{"id":126584,"date":"2018-02-20T23:50:30","date_gmt":"2018-02-20T23:50:30","guid":{"rendered":"https:\/\/writemyessayfree.com\/discuss-how-differences-between-pooling-and-purchase-account"},"modified":"2017-08-16T06:10:54","modified_gmt":"2017-08-16T06:10:54","slug":"discuss-how-differences-between-pooling-and-purchase-account","status":"publish","type":"post","link":"https:\/\/www.benedictsol.com\/blogs\/discuss-how-differences-between-pooling-and-purchase-account\/","title":{"rendered":"Discuss how differences between pooling and purchase account"},"content":{"rendered":"<div class=\"the_content_wrapper\">\n<p> Your supervisor asks you to analyze the potential purchase of Drew Company by your firm, Pierson, Inc. You are provided the following information (in million):<\/p>\n<p>Pierson,Inc. Drew COMPANY<br \/> Historical Historical Fair<br \/> Cost Based Cost Based Value<\/p>\n<p>Current Assets $70 $60 $65<br \/> Land 60 10 10<br \/> Buildings, net 80 40 50<br \/> Equipment, net 90 20 40<br \/> Total Assets $300 $130 $165<br \/> Current Liabilities $120 $20 $20<br \/> Shareholders? equity 180 110 \u2014\u2013<br \/> Total liabilities and equity $300 $130<\/p>\n<p>Required:<\/p>\n<p>a. Prepare a pro forma combined balance sheet using purchase accounting. Note that Pierson pays $180 million in cash for Drew where the cash is obtained by using long term debt.<\/p>\n<p>b. Discuss how differences between pooling and purchase accounting for acquisitions affect future reported earnings if the Pierson\/Drew business combination.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Your supervisor asks you to analyze the potential purchase of Drew Company by your firm, Pierson, Inc. You are provided the following information (in million): Pierson,Inc. Drew COMPANY Historical Historical Fair Cost Based Cost Based Value Current Assets $70 $60 <a href=\"https:\/\/www.benedictsol.com\/blogs\/discuss-how-differences-between-pooling-and-purchase-account\/\" class=\"read-more\">Read More &#8230;<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-126584","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/126584","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=126584"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/126584\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=126584"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=126584"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=126584"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}