27 On January 1, 2019 P Company acquired 70% in S company for $4,200,000; at this date S company has capital stock and retained earnings of $5,000,000 and $800,000 respectively, and have a treasury stock of $100,000. The identifiable assets and liabilities are as follow: Fair value Book value Inventory 200,000 260,000 Equipment(net) 900,000 990,000 Land 1,600,000 1,500,000 Other current assets 500,000 500,000 Other non current assets 50,000 50,000 At the date of acquisition P Company will recognise a goodwill or bargain gain of :
27 On January 1, 2019 P Company acquired 70% in S company for $4,200,000; at this date S company has capital stock and retained earnings of $5,000,000 and $800,000 respectively, and have a treasury stock of $100,000. The identifiable assets and liabilities are as follow: Fair value Book value Inventory 200,000 260,000 Equipment(net) 900,000 990,000 Land 1,600,000 1,500,000 Other current assets 500,000 500,000 Other non current assets 50,000 50,000 At the date of acquisition P Company will recognise a goodwill or bargain gain of :
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 20E
Related questions
Question
27
On January 1, 2019 P Company acquired 70% in S company for $4,200,000; at this date S company has capital stock and
The identifiable assets and liabilities are as follow:
|
|
Fair value |
Book value |
|
Inventory |
200,000 |
260,000 |
|
Equipment(net) |
900,000 |
990,000 |
|
Land |
1,600,000 |
1,500,000 |
|
Other current assets |
500,000 |
500,000 |
|
Other non current assets |
50,000 |
50,000 |
At the date of acquisition P Company will recognise a
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 3 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning