Question
Summer Company holds assets with a fair value of $125,000 and a book value of $93,000 and liabilities with a book value and fair value
Summer Company holds assets with a fair value of $125,000 and a book value of $93,000 and liabilities with a book value and fair value of $28,000. Required: Compute the following amounts if Parade Corporation acquires 65 percent ownership of Summer: a. What amount did Parade pay for the shares if no goodwill and no gain on a bargain purchase are reported?
b. What amount did Parade pay for the shares if the fair value of the noncontrolling interest at acquisition is $45,150 and goodwill of $32,000 is reported?
c. What balance will be assigned to the noncontrolling interest in the consolidated balance sheet if Parade pays $79,300 to acquire its ownership and goodwill of $25,000 is reported?
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