Rollins acquires 100% of the voting common shares of Baxter on January 1, 2010, in a transaction structured as a statutory merger. The terms of the transaction are that Baxter's shareholders will receive one share of Rollins common stock for each 2 shares Baxter stock outstanding and2,000,000 shares of Rollin's stock outstanding. At the date of acquisition, the par value of Rollin's stock is 1 and the fair value is $30 and the par value of Baxter stock is $2 and the fair value is $14
A, prepare the journal entry to be recorded by Rollins to reflect this acquisition.
B.Assume that in addition 2 the above, Rollins pays 500, 000 to it's attorneys to structure the deal and 2 000, 000 two it's accountants 2 assist in preparing consolidated financial statements. Prepare the journal entries on Rollins books 2 reflect this.
C. Same facts as in B. Above except the acquisition was done on January 1st 2008. Prepare the journal entry on Rollins books to reflect this.
D. Rollins pays 600, 0002 under writers and the Stock Exchange in consideration of the new shares of stock to be issued in the transaction. Prepare the journal entry on Rollins books so reflect this.
e. Same facts as in d. above except that the acquisition was done on January 1st 2008, prepare the journal entry on Rollins books to reflect this.
f. Do the answers to the above a,b,c,d and e above differ if the transaction was structured as either a statutory consolidation or an acquisition?
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