Hepner Corporation has the following stockholders' equity accounts: Preferred stock (7% cumulative dividend) Common stock Additional...
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Hepner Corporation has the following stockholders' equity accounts: Preferred stock (7% cumulative dividend) Common stock Additional paid-in capital Retained earnings $ 710,000 960,000 510,000 1,160,000 The preferred stock is participating. Wasatch Corporation buys 80 percent of this common stock for $1,840,000 and 70 percent of the preferred stock for $840,000. The acquisition date fair value of the noncontrolling interest in the common shares was $460,000 and was $360,000 for the preferred shares. All of the subsidiary's assets and liabilities are viewed as having fair values equal to their book values. What amount is attributed to goodwill on the date of acquisition? Goodwill Hepner Corporation has the following stockholders' equity accounts: Preferred stock (7% cumulative dividend) Common stock Additional paid-in capital Retained earnings $ 710,000 960,000 510,000 1,160,000 The preferred stock is participating. Wasatch Corporation buys 80 percent of this common stock for $1,840,000 and 70 percent of the preferred stock for $840,000. The acquisition date fair value of the noncontrolling interest in the common shares was $460,000 and was $360,000 for the preferred shares. All of the subsidiary's assets and liabilities are viewed as having fair values equal to their book values. What amount is attributed to goodwill on the date of acquisition? Goodwill
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Step1 Compute the assumed value of net assets as follows Assumed value of net assets common stock ad... View the full answer
Related Book For
Advanced Accounting
ISBN: 978-1259444951
13th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupni
Posted Date:
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