Assigning goodwill to controlling and noncontrolling interests Assume that on July 1, 2013, a parent company paid $1,881,000 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 $625,000. 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? $76,000 and $25,000 $79,500 and $26,500 $80,000 and $26,000 $81,000 and $25,000
Assigning goodwill to controlling and noncontrolling interests Assume that on July 1, 2013, a parent company paid $1,881,000 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 $625,000. 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? $76,000 and $25,000 $79,500 and $26,500 $80,000 and $26,000 $81,000 and $25,000
Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter12: Auditing Long-lived Assets And Merger And Acquisition Activity
Section: Chapter Questions
Problem 37RQSC
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Assigning goodwill to controlling and noncontrolling interests
Assume that on July 1, 2013, a parent company paid $1,881,000 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 $625,000. 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?
$76,000 and $25,000
$79,500 and $26,500
$80,000 and $26,000
$81,000 and $25,000
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