Problem 1 (12 Points) Balance sheet information for Seitz Corporation at January 1, 2011, is summarized as follows: Curr

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Problem 1 12 Points Balance Sheet Information For Seitz Corporation At January 1 2011 Is Summarized As Follows Curr 1 (34.54 KiB) Viewed 35 times

Problem 1 (12 Points) Balance sheet information for Seitz Corporation at January 1, 2011, is summarized as follows: Current assets $ 920,000 Liabilities $ 1,200,000 Plant assets 1,800,000 Capital stock $10 par 800,000 Retained earnings 720.000 52.720.000 $ 2.720.000 $28 Seitz s assets and liabilities are fairly valued except for plant assets that are undervalued By $200,000. On January 2, 2011, Pell Corporation issues 80,000 shares of its $10 par Value common stock for all of Seitz's net assets and Seitz is dissolved. Market quotations for the two stocks on this date are: Pell common: Seitz common: $19 Pell pays the following fees and costs in connection with the combination: Finder's fee $10,000 Costs of registering and issuing stock 5,000 Legal and accounting fees 6,000 Instructions a. Prepare the journal entry on Pell's books to record the business combination b. Shos the computation to calculate goodwill.