Question: Accounting Parent C o . acquires 8 0 % o f Subsidiary b y paying $ 4 0 0 , 0 0 0 when Subsidiary's

Accounting
Parent Co. acquires 80%of Subsidiary by
paying $400,000 when Subsidiary's net
assets book value is $450,000 and fair value
is $500,000. Calculate goodwill, non-
controlling interest at acquisition, and show
how both are reported on consolidated
financial statements.
Accounting Parent C o . acquires 8 0 % o f

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

over its 10-year useful life using the straight-line method (no salvage value). The parent had depreci- Following are financial statements of the parent and its subsidiary for the year ended December...

Q:

need help with my assignment, its an amortization and impairment schedule, consolidated income statement, retained earnings, nci, consolidated balance sheet Take Home Quiz Chapter 5 & 6 ACCT3065...

Q:

I need answers for all the questions on this practice final exam. I've attached the file. David A. Dittman, Financial Accounting Question Sheet HA 121 Final Exam Name:...

Q:

Please provide the detailed calculation process. Parent acquired 90% of Subsidiary's stock for $60,000 in cash on January 1, 2017, when Subsidiary's book value was $20,000. The fair value of the...

Q:

Parent acquired 90% of Subsidiary's stock for $60,000 in cash on January 1, 2017, when Subsidiary's book value was $20,000. The fair value of the noncontrolling interest was $4,000. At the time of...

Q:

please help me solve the 1-10 questions with specific steps. Parent acquired 90% of Subsidiary's stock for $60,000 in cash on January 1, 2017, when Subsidiary's book value was $20,000. The fair value...

Q:

pg. 5 notes: This table provides a summary of the accounting for investments that you can refer to throughout the module. \begin{tabular}{|c|c|c|c|c|c|} \hline \begin{tabular}{c} Debt \\ Investment...

Q:

Parent Company acquires 80% of the outstanding stock of Subsidiary Company on the open market. They acquired the 8,000 shares by exchanging 2 shares of Parent for each share of Sub. The Parent stock...

Q:

Discuss to what extent you believe that both purchased and non-purchased intangible assets should be treated in the same accounting manner. Identifiable intangible assets should be treated, for all...

Q:

1) The balance sheets of Power Company and Spectrum Corporation immediately prior to Powers acquisition of 95% of Spectrums voting stock are: Power Company Spectrum Corporation Assets Book Value Book...

Q:

Crossway Apartments, Inc.s unadjusted and adjusted trial balances at April 30, 2012, follow: Requirements 1. Make the adjusting entries that account for the differences between the two trial...

Q:

If the list has the following items 17 9 11 30 8 20 35 7 5 45 3 28 Apply the quick sort on the above list by using the pivot is always the left item and if The list after a first partition call is 7...

Q:

To be eligible for the Bona Fide Prospective Purchaser Defense under CERCLA, which of the following must apply Group of answer choices All appropriate inquiries made All disposal of hazardous waste...

Q:

What are some food related health care issues that inner cities are more likely to see than more affluent areas? Why are certain areas most likely to experience inadequate healthy food options than...