Question
On January 1, 2013, Pam Company purchased an 85% interest in Shaw Company for $537,300. On this date, Shaw Company had common stock of $401,900
On January 1, 2013, Pam Company purchased an 85% interest in Shaw Company for $537,300. On this date, Shaw Company had common stock of $401,900 and retained earnings of $135,400.
An examination of Shaw Company's assets and liabilities revealed that their book value was equal to their fair value except for marketable securities and equipment:
Book ValueFair ValueMarketable securities$19,800$45,000Equipment (net)119,600139,900
(a)
Computation and Allocation Schedule for the difference between book value of equity acquired and the value implied by the purchase price.(Round answers to 0 decimal places, e.g. 5,125.)
Parent
ShareNon-
Controlling
ShareEnrepare a tire
Value
Balance
Book Value of Equity Acquired
Common Stock
Difference Between Implied and Book Value
Equipment
Goodwill
Marketable Securities
Purchase Price and Implied Value
Retained Earnings
Total Book Value
$
$
$
Add
Less
:
Balance
Book Value of Equity Acquired
Common Stock
Difference Between Implied and Book Value
Equipment
Goodwill
Marketable Securities
Purchase Price and Implied Value
Retained Earnings
Total Book Value
Balance
Book Value of Equity Acquired
Common Stock
Difference Between Implied and Book Value
Equipment
Goodwill
Marketable Securities
Purchase Price and Implied Value
Retained Earnings
Total Book Value
Balance
Book Value of Equity Acquired
Common Stock
Difference Between Implied and Book Value
Equipment
Goodwill
Marketable Securities
Purchase Price and Implied Value
Retained Earnings
Total Book Value
Balance
Book Value of Equity Acquired
Common Stock
Difference Between Implied and Book Value
Equipment
Goodwill
Marketable Securities
Purchase Price and Implied Value
Retained Earnings
Total Book Value
Balance
Book Value of Equity Acquired
Common Stock
Difference Between Implied and Book Value
Equipment
Goodwill
Marketable Securities
Purchase Price and Implied Value
Retained Earnings
Total Book Value
Balance
Book Value of Equity Acquired
Common Stock
Difference Between Implied and Book Value
Equipment
Goodwill
Marketable Securities
Purchase Price and Implied Value
Retained Earnings
Total Book Value
Balance
Book Value of Equity Acquired
Common Stock
Difference Between Implied and Book Value
Equipment
Goodwill
Marketable Securities
Purchase Price and Implied Value
Retained Earnings
Total Book Value
Balance
Book Value of Equity Acquired
Common Stock
Difference Between Implied and Book Value
Equipment
Goodwill
Marketable Securities
Purchase Price and Implied Value
Retained Earnings
Total Book Value
Balance
Book Value of Equity Acquired
Common Stock
Difference Between Implied and Book Value
Equipment
Goodwill
Marketable Securities
Purchase Price and Implied Value
Retained Earnings
Total Book Value
Balance
Book Value of Equity Acquired
Common Stock
Difference Between Implied and Book Value
Equipment
Goodwill
Marketable Securities
Purchase Price and Implied Value
Retained Earnings
Total Book Value
$
$
$
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Fundamental Financial Accounting Concepts
Authors: Thomas Edmonds
7th Edition
73527122, 978-0073527123
