Question
Passerby International purchased 80% of Standaround Company's outstanding common stock for $200,000 on January 2, 2014. At that time, the fair value of Standaround's net
Passerby International purchased 80% of Standaround Company's outstanding common stock for $200,000 on January 2, 2014. At that time, the fair value of Standaround's net assets were equal to the book values. The balance sheets of Passerby and Standaround at January 2, 2014 are summarized as follows:
| Passerby | Standaround | |
| Assets | $1,600,000 | $470,000 |
| Liabilities | $840,000 | $230,000 |
| Capital stock | 360,000 | 50,000 |
| Retained earnings | 400,000 | 190,000 |
Determine the consolidated balances as of January 2, 2014 for the following five balance sheet line items: Goodwill, Liabilities, Capital stock, Retained earnings, and Noncontrolling interest.
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New Markets Tax Credit IRS Audit Technique Guide
Authors: Internal Revenue Service
1st Edition
1304112896, 978-1304112897
