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Please help me answering the following questions and show all work! On January 1, 2021, Peerless Company buys 80% of the voting stock of Superb
Please help me answering the following questions and show all work!
On January 1, 2021, Peerless Company buys 80% of the voting stock of Superb Inc. for $120 million in cash. The total fair value of the noncontrolling interest is $19 million. Before the acquisition, the trial balance of each company (in millions) at January 1, 2021, along with the fair value of Superb assets and liabilities and and their remaining useful lives. is: Requirements: 1. Calculate total goodwill generated by the acquisition. 2. Calculate goodwill to the controlling interest. 3. Calculate goodwill to the non controlling interest. MGT 136 HOW Chapter 5 - Requirement 1 Input Formula Total Goodwill (\$ millions) Acquisition cost Fair value of noncontrolling interest Total fair value Book value of Superb Fair value in excess of book value Less revaluations of identifiable net assets Property \& equipment, net Intangible assets Total goodwill MGT 136 HOW Chapter 5 - Requirement 2 Goodwill to the Controlling Interest (\$ millions) Acquisition cost Less controlling interest in fair value of Superb's identifiable net assets* Goodwill to the Controlling Interest MGT 136 HOW Chapter 5 - Requirement 3 Goodwill to the Noncontrolling Interest (\$ millions) Total goodwill Less: Goodwill to the controlling interest Goodwill to the noncontrolling interestStep by Step Solution
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