On December 31, 2020, Pom Companypurchased 90% of Sod Company's stock for$250,000 cash. At this date, the book value ofSod Company's assets included land that hada book value of $60,000 and a market valueof $68,000. Sod Company's equity consistedof $80,000 common stock and $140,000retained earnings. Please answer thefollowing questions after the elimination entryto prepare consolidated statements atDecember 31:a) How much goodwill will be recognized inconsolidation? $b) How much is the minority interest inconsolidation? $c) How much of Sod's equity is included inconsolidation? $

This question deals with business combination.

Answered: December 31: a) How much goodwill will…

December 31: a) How much goodwill will be recognized in consolidation? $ b) How much is the minority interest in consolidation? $. c) How much of Sod's equity is included in consolidation? $_

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

Chapter12: Intangibles

Section: Chapter Questions

Problem 18E

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