Question
In: Accounting
Albuquerque, Inc., acquired 18,000 shares of Marmon Company several years ago for $750,000. At the acquisition...
Albuquerque, Inc., acquired 18,000 shares of Marmon Company several years ago for $750,000. At the acquisition date, Marmon reported a book value of $820,000, and Albuquerque assessed the fair value of the noncontrolling interest at $250,000. Any excess of acquisition-date fair value over book value was assigned to broadcast licenses with indefinite lives. Since the acquisition date and until this point, Marmon has issued no additional shares. No impairment has been recognized for the broadcast licenses.
At the present time, Marmon reports $930,000 as total stockholders’ equity, which is broken down as follows:
Common stock ($10 par value) $ 240,000
Additional paid-in capital 380,000
Retained earnings 310,000
Total $ 930,000
View the following as independent situations: a. & b. Marmon sells 6,000 and 3,000 shares of previously unissued common stock to the public for $56 and $27 per share. Albuquerque purchased none of this stock.
1. What journal entry should Albuquerque make to recognize the impact of this stock transaction? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round your intermediate calculations.)
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Albuquerque, Inc., acquired 24,000 shares of Marmon Company several years ago for $810,000. At the acquisition...
Albuquerque, Inc., acquired 24,000 shares of Marmon Company
several years ago for $810,000. At the acquisition date, Marmon
reported a book value of $880,000, and Albuquerque assessed the
fair value of the noncontrolling interest at $270,000. Any excess
of acquisition-date fair value over book value was assigned to
broadcast licenses with indefinite lives. Since the acquisition
date and until this point, Marmon has issued no additional shares.
No impairment has been recognized for the broadcast licenses.
At the present time,...
Albuquerque, Inc., acquired 24,000 shares of Marmon Company several years ago for $780,000. At the acquisition...
Albuquerque, Inc., acquired 24,000 shares of Marmon Company
several years ago for $780,000. At the acquisition date, Marmon
reported a book value of $800,000, and Albuquerque assessed the
fair value of the noncontrolling interest at $32,500. Any excess of
acquisition-date fair value over book value was assigned to
broadcast licenses with indefinite lives. Since the acquisition
date and until this point, Marmon has issued no additional shares.
No impairment has been recognized for the broadcast licenses.
At the present time,...
Albuquerque, Inc., acquired 24,000 shares of Marmon Company several years ago for $720,000. At the acquisition...
Albuquerque, Inc., acquired 24,000 shares of Marmon Company
several years ago for $720,000. At the acquisition date, Marmon
reported a book value of $870,000, and Albuquerque assessed the
fair value of the noncontrolling interest at $180,000. Any excess
of acquisition-date fair value over book value was assigned to
broadcast licenses with indefinite lives. Since the acquisition
date and until this point, Marmon has issued no additional shares.
No impairment has been recognized for the broadcast licenses. At
the present time,...
Albuquerque, Inc., acquired 24,000 shares of Marmon Company several years ago for $720,000. At the acquisition...
Albuquerque, Inc., acquired 24,000 shares of Marmon Company
several years ago for $720,000. At the acquisition date, Marmon
reported a book value of $500,000, and Albuquerque assessed the
fair value of the noncontrolling interest at $30,000. Any excess of
acquisition-date fair value over book value was assigned to
broadcast licenses with indefinite lives. Since the acquisition
date and until this point, Marmon has issued no additional shares.
No impairment has been recognized for the broadcast licenses.
At the present time,...
Albuquerque, Inc., acquired 27,000 shares of Marmon Company several years ago for $900,000. At the acquisition...
Albuquerque, Inc., acquired 27,000 shares of Marmon Company
several years ago for $900,000. At the acquisition date, Marmon
reported a book value of $980,000, and Albuquerque assessed the
fair value of the noncontrolling interest at $100,000. Any excess
of acquisition-date fair value over book value was assigned to
broadcast licenses with indefinite lives. Since the acquisition
date and until this point, Marmon has issued no additional shares.
No impairment has been recognized for the broadcast licenses.
At the present time,...
Albuquerque, Inc., acquired 27,000 shares of Marmon Company several years ago for $900,000. At the acquisition...
Albuquerque, Inc., acquired 27,000 shares of Marmon Company
several years ago for $900,000. At the acquisition date, Marmon
reported a book value of $980,000, and Albuquerque assessed the
fair value of the noncontrolling interest at $100,000. Any excess
of acquisition-date fair value over book value was assigned to
broadcast licenses with indefinite lives. Since the acquisition
date and until this point, Marmon has issued no additional shares.
No impairment has been recognized for the broadcast licenses.
At the present time,...
Albuquerque, Inc., acquired 36,000 shares of Marmon Company several years ago for $900,000. At the acquisition...
Albuquerque, Inc., acquired 36,000 shares of Marmon Company
several years ago for $900,000. At the acquisition date, Marmon
reported a book value of $980,000, and Albuquerque assessed the
fair value of the noncontrolling interest at $100,000. Any excess
of acquisition-date fair value over book value was assigned to
broadcast licenses with indefinite lives. Since the acquisition
date and until this point, Marmon has issued no additional shares.
No impairment has been recognized for the broadcast licenses.
At the present time,...
Parkette, Inc., acquired a 60 percent interest in Skybox Company several years ago. During 2017, Skybox...
Parkette, Inc., acquired a 60 percent interest in Skybox Company
several years ago. During 2017, Skybox sold inventory costing
$188,000 to Parkette for $235,000. A total of 13 percent of this
inventory was not sold to outsiders until 2018. During 2018, Skybox
sold inventory costing $225,320 to Parkette for $262,000. A total
of 30 percent of this inventory was not sold to outsiders until
2019. In 2018, Parkette reported cost of goods sold of $577,500
while Skybox reported $365,000. What...
Consolidation several years subsequent to date of acquisition—Equity method Assume that a parent company acquired a...
Consolidation several years subsequent to date of
acquisition—Equity method
Assume that a parent company acquired a subsidiary on January 1,
2014. The purchase price was $785,000 in excess of the subsidiary’s
book value of Stockholders’ Equity on the acquisition date, and
that excess was assigned to the following [A] assets:
[A]
Asset
Original
Amount
Original
Useful
Life
Property, plant and equipment (PPE), net
$140,000
16
years
Patent
245,000
7
years
License
105,000
10
years
Goodwill
295,000
Indefinite
$785,000
The [A]...
Consolidation several years subsequent to date of acquisition—Equity method Assume that a parent company acquired a...
Consolidation several years subsequent to date of
acquisition—Equity method
Assume that a parent company acquired a subsidiary on January 1,
2014. The purchase price was $765,000 in excess of the subsidiary’s
book value of Stockholders’ Equity on the acquisition date, and
that excess was assigned to the following [A] assets:
[A]
Asset
Original
Amount
Original
Useful
Life
Property, plant and equipment (PPE), net
$140,000
16
years
Patent
245,000
7
years
License
105,000
10
years
Goodwill
275,000
Indefinite
$765,000
The [A]...
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