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On June 30, 2014, Plaster, Inc., paid $916,000 for 80 percent of Stucco Company's outstanding stock. Plaster assessed the acquisition-date fair value of the 20
On June 30, 2014, Plaster, Inc., paid $916,000 for 80 percent of Stucco Company's outstanding stock. Plaster assessed the acquisition-date fair value of the 20 percent noncontrolling interest at $229,000. At acquisition date, Stucco reported the following book values for its assets and liabilities Cash Accounts receivable Inventory Land Buildings Equipment Accounts payable $ 60,000 127,000 203,000 65,000 175,000 300,000 (35,000) On June 30, Plaster allocated the excess acquisition-date fair value over book value to Stucco's assets as follows Equipment (3-year life) Database (10-year life) $ 75,000 175,000 At the end of 2014, the following comparative (2013 and 2014) balance sheets and consolidated income statement were available Plaster, Inc. December 31, 2013 Consolidated December 31, 2014 $43,000 362,000 415,000 300,000 245,000 1,800,000 0 $ 242,850 485,400 720,000 365,000 370,000 2,037,500 166,250 Cash Accounts receivable (net) Inventory Land Buildings (net) Equipment (net) Database Total assets $ 3,165,000 $4,387,000 Accounts payable Long-term liabilities Common stock Noncontrolling interest Retained earnings $ 80,000 400,000 1,800,000 $ 107,000 1,200,000 1,800,000 255,500 1,024,500 885,000 Total liabilities and equities $ 3,165,000 $ 4,387,000
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