Darwin Company holds assets with a fair value of $120,000 and a book value of $90,000 and

Question:

Darwin Company holds assets with a fair value of $120,000 and a book value of $90,000 and liabilities with a book value and fair value of $25,000.

Required
Compute the following amounts if Brad acquires 60 percent ownership of Darwin:
a. What amount did Brad pay for the shares if no and no gain on a bargain purchase are reported?
b. What amount did Brad pay for the shares if the fair value of the noncontrolling interest at acquisition is $54,000 and of $40,000 is reported?
c. What balance will be assigned to the noncontrolling interest in the consolidated if Brad pays $73,200 to acquire its ownership and of $27,000 is reported?

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