[Ⅱ] Calculate the difference between
the value implied by the purchase price and book value in each of
the separate cases below
Case
Percent of Stock Owned
Investment
Cost
S Company Equity Balances
Common
Stock
Other
Contributed
Capital
Retained
Earnings
a.
100%
$1,200,000
$600,000
$350,000
$200,000
b.
85%
850,000
500,000
200,000
100,000
c.
90%
1,000,000
750,000
300,000
(250,000)
d.
60%
600,000
350,000
-0-
300,000