Assigning bargain purchase gain (i.e., "negative goodwill") to controlling and noncontrolling interests Assume that on July 1, 2013, a parent company paid $1,700,000 to purchase a 75% interest in a subsidiary's voting common stock. On that date, the fair value of the 25% interest not purchased by the parent company is $575,000. The acquisition-date fair value of the identifiable net assets of the subsidiary is $2,400,000. What is the amount of goodwill assigned to the controlling and noncontrolling interests, respectively, on the acquisition date? C$125,000 bargain purchase gain assigned to the controlling interest and $0 assigned to the noncontrolling interest $100,000 bargain purchase gain assigned to the controlling interest and $50,000 bargain purchase gain assigned to the noncontrolling interest $100,000 goodwill assigned to the controlling interest and $50,000 goodwill assigned to the noncontrolling interest C$75,000 bargain purchase gain assigned to the controlling interest and $75,000 bargain purchase gain assigned to the noncontrolling interest.
Assigning bargain purchase gain (i.e., "negative goodwill") to controlling and noncontrolling interests Assume that on July 1, 2013, a parent company paid $1,700,000 to purchase a 75% interest in a subsidiary's voting common stock. On that date, the fair value of the 25% interest not purchased by the parent company is $575,000. The acquisition-date fair value of the identifiable net assets of the subsidiary is $2,400,000. What is the amount of goodwill assigned to the controlling and noncontrolling interests, respectively, on the acquisition date? C$125,000 bargain purchase gain assigned to the controlling interest and $0 assigned to the noncontrolling interest $100,000 bargain purchase gain assigned to the controlling interest and $50,000 bargain purchase gain assigned to the noncontrolling interest $100,000 goodwill assigned to the controlling interest and $50,000 goodwill assigned to the noncontrolling interest C$75,000 bargain purchase gain assigned to the controlling interest and $75,000 bargain purchase gain assigned to the noncontrolling interest.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 30E
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