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[] Calculate the difference between the value implied by the purchase price and book value in each of the separate cases below Case Percent of
[] 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 |
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