Question
On January 1, Henry PLC purchased 5,000 out of 20,000 of Atah PLCs outstanding common stock for $29,000,000. Atah PLC shareholders equity for the period
On January 1, Henry PLC purchased 5,000 out of 20,000 of Atah PLC’s outstanding common stock for $29,000,000. Atah PLC shareholders’ equity for the period was $100,000,000 at that date. The information regarding the difference between the book value and the fair value of Atah PLC’s assets and liabilities on January 1 was as follows:
■ Inventory (sold in the current year) was overvalued by $4,000,000.
■ Equipment with a remaining useful life of 10 years was undervalued by $24,000,000.
■ Notes payable due in 5 years was undervalued by $8,000,000.
REQUIRED
Calculate goodwill from Henry PLC’s investment in Atah PLC
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Answer PLC Purchased Purchased 5000 out of 20000 Controlling Interest 500020000 25 Equity For ...
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
