Question: I need to make an assignment schedule with a book value greater than fair value. Pam Corporation pays $10,800,000 for an 80 percent interest in

I need to make an assignment schedule with a book value greater than fair value.

Pam Corporation pays $10,800,000 for an 80 percent interest in Sun Corporation on January 1, 2016, at which time the book value and fair value of Sun's net assets are as follows (in thousands)

With the information below, I would like to know how to make a schedule to assign the fair value/book value differentials to Sun's net assets.

	Book Value	Fair Value
Current Assets	$4,000	$6,000
Equipment - net	8,000	12,000
Other plant assets - net	4,000	4,000
Liabilities	(6,000)	(6,000)
Net assets	$10,000	$16,000

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!

I need to make an assignment schedule with a book value greater than fair value. Pam Corporation pays $10,800,000 for an 80 percent interest in Sun Corporation on January 1, 2016, at which time the...

Pam Corporation pays $10,800,000 for an 80 percent interest in Sun Corporation on January 1, 2016, at which time the book value and fair value of Sun's net assets are as follows (in thousands):...

Computations under parent-company and entity theories (fair value/book value differentials) On January 1, 2017, Pam Corporation pays $600,000 for an 80 percent interest in Sun Company, when Sun's net...

E2-4,5,6 if anyone could, im having a hard time solving. Calculate Income for a midyear Investment Pam Corporation pays $300,000 for a 30 percent interest in Sun Corporation on July 1, 2016. When the...

Pam Corporation paid $170,000 for an 80 percent interest in Sun Corporation on December 31, 2016, when Suns stockholders equity consisted of $100,000 capital stock and $50,000 retained earnings. A...

Pam Corporation paid $170,000 for an 80 percent interest in Sun Corporation on December 31, 2016, when Sun's stockholders' equity consisted of $100,000 capital stock and $50,000 retained earnings. A...

Problem No: 2 (20-25 minutes) PJ Corporation pays $5,400,000 for an 80 percent interest in Sof Corporation on January 1, 2011, at which time the book value and fair value of Sof's net assets are as...

PJ Corporation pays $5,400,000 for an 80 percent interest in Sof Corporation on January 1, 2011, at which time the book value and fair value of Sof's net assets are as follows (in thousands):...

PJ Corporation pays $10,800,000 for an 80 percent interest in Sof Corporation on January 1, 2011, at which time the book value and fair value of Sof's net assets are as follows (in thousands): Book...

A chocolate manufacturer is producing three different types of chocolates: small packages of individually wrapped milk chocolate squares (for a total of 5.32 ounces), singular 3.5 ounces dark...

On August 20, 2018, Micco, Co. decides to invest excess cash of $3,000 by purchasing Prairie, Inc. bonds. At year-end, December 31, 2018, the market price of the bonds was $2,400. The investment is...

Which of the following items does a service company not have on its financial statements? a . Expenses b . Long - term debt c . Cost of goods sold d . Sales revenue

Riverbed Company estimates that 2017 sales will be $42,800 in quarter 1, $51,300 in quarter 2, and $58,300 in quarter 3. Cost of goods sold is 50% of sales. Management desires to have ending finished...