Question
Son corporations stockholder equity at dec 31,2015 capital stock $10 per 60,000shares issued and outstanding =$600 addtional paid in capital =$150 Retained earnings = $250
addtional paid in capital =$150
Retained earnings = $250
Total stockholders equity =$1000
on jan 1,2016,Pop corporation purchased 20,000 previously unissued shares of son stock directly from son corporation for $500,000
a) cal pop corporation percentage ownership in son
b) determine the goodwill (if any) from pop investment in son. assume book value of all identified assets and libaility equal the fair value
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Financial and Managerial Accounting the basis for business decisions
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