Hepner Corporation has the following stockholders’ equity accounts: Preferred stock (8% cumulative dividend) $ 660,000 Common stock 910,000 Additional paid-in capital 460,000 Retained earnings 1,110,000 The preferred stock is participating. Wasatch Corporation buys 70 percent of this common stock for $1,820,000 and 60 percent of the preferred stock for $810,000. The acquisition-date fair value of the noncontrolling interest in the common shares was $780,000 and was $540,000 for the preferred shares. All of the subsidiary’s assets and liabilities are viewed as having fair values equal to their book values. What amount is attributed to goodwill on the date of acquisition?
Hepner Corporation has the following stockholders’ equity accounts: Preferred stock (8% cumulative dividend) $ 660,000 Common stock 910,000 Additional paid-in capital 460,000 Retained earnings 1,110,000 The preferred stock is participating. Wasatch Corporation buys 70 percent of this common stock for $1,820,000 and 60 percent of the preferred stock for $810,000. The acquisition-date fair value of the noncontrolling interest in the common shares was $780,000 and was $540,000 for the preferred shares. All of the subsidiary’s assets and liabilities are viewed as having fair values equal to their book values. What amount is attributed to goodwill on the date of acquisition?
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
Chapter15: Contributed Capital
Section: Chapter Questions
Problem 2MC: Cary Corporation has 50,000 shares of 10 par common stock authorized. The following transactions...
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Hepner Corporation has the following stockholders’ equity accounts:
| Preferred stock (8% cumulative dividend) | $ | 660,000 |
| Common stock | 910,000 | |
| Additional paid-in capital | 460,000 | |
| 1,110,000 | ||
The preferred stock is participating. Wasatch Corporation buys 70 percent of this common stock for $1,820,000 and 60 percent of the preferred stock for $810,000. The acquisition-date fair value of the noncontrolling interest in the common shares was $780,000 and was $540,000 for the
What amount is attributed to
Goodwill:
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