Pool Industries paid $540,000 to purchase 75% of the outstanding stock of Swimmin’ Corporation, on December 31, 2014. Any excess fair value over the identified assets and liabilities is attributed to goodwill. The following year-end information was available just before the purchase:

Pool Swimmin’ Swimmin’
Book Book Fair
Value Value Value
Cash $756,000 $80,000 $80,000
Accounts receivable 260,000 152,000 152,000
Inventory 480,000 100,000 120,000
Land 440,000 160,000 140,000
Plant and equipment-net 1,320,000 400,000 430,000
$3,256,000 $892,000 $922,000

Accounts payable $880,000 $22,000 $22,000
Bonds payable 936,000 200,000 180,000
Capital stock, $10 par value 400,000
Capital stock, $15 par value 450,000
Additional paid-in capital 400,000 160,000
Retained earnings 640,000 60,000
$3,256,000 $892,000

Prepare Pool's consolidated balance sheet on December 31, 2014

Answer rating: 100% (QA)

Pool industry purchased 75 interest in swimmin corporation for 540000 Implied fair valu... View the full answer