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Dodd Co. acquired 75% of the common stock of Wallace Corp. for $1,800,000. The fair value...
Dodd Co. acquired 75% of the common stock of Wallace Corp. for $1,800,000. The fair value of Wallace’s net assets was $2,100,000, and the book value was $1,900,000. The noncontrolling interest shares of Wallace Corp. are not actively traded.
a. What amount of goodwill should be attributed to Dodd at the date of acquisition?
b. What amount of goodwill should be attributed to the noncontrolling interest at the date of acquisition?
c. What is the dollar amount of noncontrolling interest that should appear in a consolidated balance sheet prepared at the date of acquisition?
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ekkarill92 answered 1 year agoRelated Solutions
Dodd Co. acquired 75% of the common stock of Wallace Corp. for $1,800,000. The fair value...
Dodd Co. acquired 75% of the common stock of Wallace Corp. for
$1,800,000. The fair value of Wallace’s net assets was $2,100,000,
and the book value was $1,900,000. The noncontrolling interest
shares of Wallace Corp. are not actively traded. What is the dollar
amount of noncontrolling interest that should appear in a
consolidated balance sheet prepared at the date of acquisition?
A. 525,000 B. 475,000 C. 600,000 D. 450,000 E. 75,000
Dodd Co. acquired 75% of the common stock of Wallace Corp. for $1,800,000. The fair value...
Dodd Co. acquired 75% of the common stock of Wallace Corp. for
$1,800,000. The fair value of Wallace’s net assets was $2,100,000,
and the book value was $1,900,000. The noncontrolling interest
shares of Wallace Corp. are not actively traded.What is the dollar
amount of fair value over book value differences for identifiable
net assets attributed to Dodd at the date of acquisition?
Brown Inc. acquired 75% of the common stock of Allen Co. for $1,800,000. The fair value...
Brown Inc. acquired 75% of the common stock of Allen Co.
for $1,800,000. The fair value of Allen's net assets was
$2,240,000, and the book value was $1,800,000. The non-controlling
interest shares of Allen Corp. are not actively traded and there is
no control premium.
What is the total amount of goodwill recognized at the
date of acquisition?
A. $120,000.
B. $150,000.
C. $0.
D. $160,000.
What amount of goodwill should be attributed to Brown
Inc. at the date of...
Perch Co. acquired 80% of the common stock of Float Corp. for $1,600,000. The fair value...
Perch Co. acquired 80% of the common stock of Float Corp. for
$1,600,000. The fair value of Float's net assets was $1,850,000,
and the book value was $1,500,000. The noncontrolling interest
shares of Float Corp. are not actively traded. What is the dollar
amount of noncontrolling interest that should appear in a
consolidated balance sheet prepared at the date of acquisition?
a.
$350,000.
b.
$300,000.
c.
$400,000.
d.
$370,000.
1)When Peter Pan Co. acquired 75% of the common stock of Smee Corp., Smee owned land...
1)When Peter Pan Co. acquired 75% of the common stock of Smee
Corp., Smee owned land with a book value of $70,000 and a fair
value of $100,000.
What is the amount of excess land allocation attributed to the
controlling interest at the acquisition date?
A. $0.
B. $30,000.
C. $22,500.
D. $25,000.
E. $17,500.
2) Perch Co. acquired 80% of the common stock of Salem Corp. for
$1,600,000. The fair value of Salem's net assets was $1,850,000,
and the...
Marigold Corp. issued 10100 shares of its $5 par value common stock having a fair value...
Marigold Corp. issued 10100 shares of its $5 par value common
stock having a fair value of $20 per share and 14700 shares of its
$15 par value preferred stock having a fair value of $30 per share
for a lump sum of $518000. How much of the proceeds would be
allocated to the common stock?
$162731
$355269
$202000
$228250
Spam Corp. is financed entirely by common stock and has a beta of .75. The firm...
Spam Corp. is financed entirely by common stock and has a beta
of .75. The firm is expected to generate a level, perpetual stream
of earnings and dividends. The stock has a price-earnings ratio of
7.80 and a cost of equity of 12.82%. The company’s stock is selling
for $54. Now the firm decides to repurchase half of its shares and
substitute an equal value of debt. The debt is risk-free, with an
interest rate of 3.5%. The company is...
Matthews Co. acquired all of the common stock of Jackson Co. on January 1, 2020. As...
Matthews Co. acquired all of the common stock of Jackson Co. on
January 1, 2020. As of that date, Jackson had the following trial
balance:
Debit
Credit
Accounts payable
$
60,000
Accounts receivable
$
50,000
Additional paid-in capital
60,000
Buildings (net) (20-year life)
140,000
Cash and short-term investments
70,000
Common stock
300,000
Equipment (net) (8-year life)
240,000
Intangible assets (indefinite life)
110,000
Land
90,000
Long-term liabilities (mature 12/31/22)
180,000
Retained earnings, 1/1/20
120,000
Supplies
20,000
Totals
$
720,000
$
720,000...
On January 1, 2015, Pack Co. acquired 80% of the common stock of Sack Co. by...
On January 1, 2015, Pack Co. acquired 80% of the common stock of
Sack Co. by paying $80,000. On that date Sack' land was undervalued
$3,800 and its Buildings (7 yr life) were undervalued $4,200 and
its equipment (5 Yr life) were undervalued $2,000. A. Show the
elements making of the cost of the investment. (Hint: Set up a
schedule showing the controlling and non-controlling interest in
the individual elements) B. Prepare consolidation entry S to
eliminate the sub’s equity...
) Matthews Co. acquired all of the common stock of Jackson Co. on January 1, 2017....
) Matthews Co. acquired all of the common stock of Jackson Co.
on January 1, 2017. As of that date, Jackson had the following
trial balance: Debit Credit Accounts payable $ 60,000 Accounts
receivable $ 50,000 Additional paid-in capital 60,000 Buildings
(net) (20-year life) 140,000 Cash and short-term investments 70,000
Common stock 300,000 Equipment (net) (8-year life) 240,000
Intangible assets (indefinite life) 110,000 Land 90,000 Long-term
liabilities (mature 12/31/19) 180,000 Retained earnings, 1/1/17
120,000 Supplies 20,000 Totals $ 720,000 $...
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