Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Albuquerque, Incorporated, acquired 1 8 , 0 0 0 shares of Marmon Company several years ago for $ 7 0 0 , 0 0 0

Albuquerque, Incorporated, acquired 18,000 shares of Marmon Company several years ago for $700,000. At the acquisition date, Marmon reported a book value of $730,000, and Albuquerque assessed the fair value of the noncontrolling interest at $70,000. 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 $800,000 as total stockholders equity, which is broken down as follows:
Common stock ($12 par value) $ 240,000
Additional paid-in capital 250,000
Retained earnings 310,000
Total $ 800,000
View the following as independent situations:
Required:
a. & b. Marmon sells 5,000 and 4,000 shares of previously unissued common stock to the public for $47 and $21 per share. Albuquerque purchased none of this stock. What journal entry should Albuquerque make to recognize the impact of this stock transaction?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting For Inventory

Authors: Steven M. Bragg

2nd Edition

1938910648, 9781938910647

More Books

Students also viewed these Accounting questions

Question

2.1 Explain how employment-related issues are governed in Canada.

Answered: 1 week ago

Question

2.3 Describe the requirements for reasonable accommodation.

Answered: 1 week ago