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Perch Co. acquired 80% of the common stock of Float Corp. for $1,600,000. The fair value of Float's net assets was $1,850,000, and the book
Perch Co. acquired 80% of the common stock of Float Corp. for $1,600,000. The fair value of Float's net assets was $1,850,000, and the book value was $1,500,000. The noncontrolling interest shares of Float Corp. are not actively traded.
1) What amount of goodwill should be attributed to Perch at the date of acquisition?
2) What amount of goodwill should be attributed to the noncontrolling interest at the date of acquisition?
3) What is the dollar amount of noncontrolling interest that should appear in a consolidated balance sheet prepared at the date of acquisition?
4) What is the dollar amount of fair value over book value differences attributed to Perch at the date of acquisition?
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