The book value of a share of Camden common stock on December 31 is $12. The balance sheet value and the market value of the company’s assets and liabilities as of that date follow. Chapter 8 Investments in Equity Securities 399 Balance Sheet Value Market Value $ 15,000 24,000 25,000 47,000 (60,000) $ 51,000 On December 31, Conglomerate, Inc., purchased 100 percent of the outstanding stock of Camden for $22 per share. REQUIRED:

a. How many shares of common stock did Camden have outstanding as of December 31 ?

b. Compute the per-share net market value of Camden’s common stock.

c. Why would Conglomerate pay more than the per-share market value for a share of Camden common stock?

d. Prepare the entry that reflects the acquisition.