You have recently become the controller of Precision Corporation, a manufacturing enterprise that has begun a program of expansion through business combinations. On February 1,2005, two weeks prior to your controllership appointment, Precision had completed the acquisition of 85% of the outstanding common stock of Sloan Company for $255,000 cash, including out-of-pocket costs. You are engaged in a discussion with Precision’s
Group assignment on Business Combinations Case .1 You have been engaged to audit the financial statements of Solamente Corporation for the fiscal year ended May 31, 2005. You discover that on June 1, 2004, Mika Company had been merged into Solamente in a business combination. You also find that both Solamente and Mika (prior to […]