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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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