Question: Deal Corporation issued 4 000 shares of its 10 par value

Deal Corporation issued 4,000 shares of its $10 par value stock with a market value of $85,000 to acquire 85 percent ownership of Mead Company on August 31, 20X3. Mead’s fair value was determined to be $100,000 on that date. Deal had earlier purchased 15 percent of Mead’s shares for $9,000 and used the cost method in accounting for its investment in Mead. Deal later paid appraisal fees of $3,500 and stock issue costs of $2,000 incurred in completing the acquisition of the additional shares.
Required
Give the journal entries to be recorded by Deal in completing the acquisition of the additional shares of Mead.


View Solution:


Sale on SolutionInn
Sales2
Views185
Comments
  • CreatedMay 23, 2014
  • Files Included
Post your question
5000