Roland acquires 70% of Felix on January 1, 2011. The terms of purchase are that Roland pays to Felix shareholders 70,000 shares of Roland common stock with a market value of $20 per share. The remaining 30,000 shares of Felix were traded at $15 both just before the acquisition date and right after the acquisition date. d. Assume that 100% of the fair value of net assets acquired was S1,200,000. How much is goodwill e. How much goodwill is allocated to the controlling interest f. How much goodwill is allocated to the non-controlling interest
Roland acquires 70% of Felix on January 1, 2011. The terms of purchase are that Roland pays to Felix shareholders 70,000 shares of Roland common stock with a market value of $20 per share. The remaining 30,000 shares of Felix were traded at $15 both just before the acquisition date and right after the acquisition date. d. Assume that 100% of the fair value of net assets acquired was S1,200,000. How much is goodwill e. How much goodwill is allocated to the controlling interest f. How much goodwill is allocated to the non-controlling interest
Chapter20: Corporations: Distributions In Complete Liquidation And An Overview Of Reorganizations
Section: Chapter Questions
Problem 37P
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Roland acquires 70% of Felix on January 1, 2011. The terms of purchase are that Roland pays to Felix shareholders 70,000 shares of Roland common stock with a market value of $20 per share. The remaining 30,000 shares of Felix were traded at $15 both just before the acquisition date and right after the acquisition date.
d. Assume that 100% of the fair value of net assets acquired was S1,200,000. How much is
e. How much goodwill is allocated to the controlling interest
f. How much goodwill is allocated to the non-controlling interest
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