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On January 1, 2013, Pippen Co. acquired for $5,000 2,000 shares out of a total of 8,000 shares of the outstanding common stock of Scottie
On January 1, 2013, Pippen Co. acquired for $5,000 2,000 shares out of a total of 8,000 shares of the outstanding common stock of Scottie Co. Pippen used the equity method of accounting for its investments in 2,000 shares of Scottie. On December 31, 2013, Pippen acquired all the remaining 6,000 shares of common stock of Scottie in exchange for 3,000 of its own shares of common stock. In addition, on the acquisition date, Pippen promised to issue to the selling Scottie shareholders 500 additional shares of Pippen's common stock on December 31, 2014, if the separate net income of Scottie in 2014 is greater than $6,000. On the acquisition date, the fair value of this promise was $9,000.
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ANSWER For December 31 2014 Consolidated Balances 1 Goodwill 25000 2 Retained Earnings 123114 77600 3 Common Stock 28000 4 Additional Paidin Capital 89000 Explanation On January 1 2013 Pippen Co owned ...Get Instant Access to Expert-Tailored Solutions
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