Hepner Corporation has the following stockholders’ equity accounts:

The preferred stock is participating. Wasatch Corporation buys 80 percent of this common stock for \($1,600,000\) and 70 percent of the preferred stock for \($630,000.\) The acquisition-date fair value of the noncontrolling interest in the common shares was \($400,000\) and was \($270,000\) 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?

Transcribed Image Text:

Preferred stock (6% cumulative dividend) $500,000 Common stock... 750,000 Additional paid-in capital 300,000 Retained earnings.. 950,000