Purchase Peregrine Company acquired 80 percentage of Sparrow Company's common stock on June 30, 2014, for $22,000,000
Question:
Assume that the fair values above have been carefully evaluated for accuracy. The fair value of the non-controlling interest is estimated to be $4,000,000 at the date of acquisition.
Required
a. Calculate the gain on acquisition and prepare Peregrine's acquisition entry.
b. Prepare the working paper eliminating entries needed to consolidate Peregrine and Sparrow on June 30, 2014.
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
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Related Book For
Advanced Accounting
ISBN: 978-1934319307
2nd edition
Authors: Susan S. Hamlen, Ronald J. Huefner, James A. Largay III
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