Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
Company A acquired 80% of the voting stock of Company B on 6/30/2017 for $2,100,000 (30,000 shares at the market price of $70 per share)
Company A acquired 80% of the voting stock of Company B on 6/30/2017 for $2,100,000 (30,000 shares at the market price of $70 per share) in a transaction that qualifies as a business combination. Balance sheet information determined for both Company A and Company B on 6/30/2017 are as follows: (for partial credit show how amounts were determined) Company A Company BCompany B Book valus Book values Fair values 280,000 260,000 280,000 250,000 1,800,000 950,000 Cash A/R 300,000 450,000 2.300.000 250,000 1,500,000 Plant assets (net) Intangibles 170,000 1.200.000 900.000 900,000 Liabilities a) Based on the information provided, what amount of noncontrolling interest should Company A record as part of its acquisition of Company B? 119, U b) What amount of goodwill or gain does Company A recognize on this business combination? Label the amount as goodwill or gain. 2. c) On a consbldated balance sheet prepared on 6/30/2017, what amount would be reported as total assets? d) Assuming Company B elected push-down accounting at the acquisition date, what amount of total assets would Company B repor ts 6/30/2017 balance sheet
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started