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Summer Company holds assets with a fair value of $120,000 and a book value of $90,000 and liabilities with a book value and fair value
Summer Company holds assets with a fair value of $120,000 and a book value of $90,000 and liabilities with a book value and fair value of $25,000.
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Compute the following amounts if Parade Corporation acquires 60 percent ownership of Summer:
- What amount did Parade pay for the shares if no goodwill and no gain on a bargain purchase are reported?
- What amount did Parade pay for the shares if the fair value of the noncontrolling interest at acquisition is $54,000 and goodwill of $40,000 is reported?
- What balance will be assigned to the noncontrolling interest in the consolidated balance sheet if Parade pays $73,200 to acquire its ownership and goodwill of $27,000 is reported?
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