Question
Pool Industries paid $540,000 to purchase 75% of the outstanding stock of Swimmin Corporation, on December 31, 2014. Any excess fair value over the identified
Pool Industries paid $540,000 to purchase 75% of the outstanding stock of Swimmin Corporation, on December 31, 2014. Any excess fair value over the identified assets and liabilities is attributed to goodwill. The following year-end information was available just before the purchase: Pool Swimmin Swimmin Book Book Fair Value Value Value Cash $756,000 $80,000 $80,000 Accounts receivable 260,000 152,000 152,000 Inventory 480,000 100,000 120,000 Land 440,000 160,000 140,000 Plant and equipment-net 1,320,000 400,000 430,000 $3,256,000 $892,000 $922,000 Accounts payable $880,000 $22,000 $22,000 Bonds payable 936,000 200,000 180,000 Capital stock, $10 par value 400,000 Capital stock, $15 par value 450,000 Additional paid-in capital 400,000 160,000 Retained earnings 640,000 60,000 $3,256,000 $892,000 Prepare Pool's consolidated balance sheet on December 31, 2014.
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