Summer Company holds assets with a fair value of $122,000 and a book value of $93,000 and liabilities with a book value and fair value of $22,000. Required: Compute the following amounts if Parade Corporation acquires 75 percent ownership of Summer: a. What amount did Parade pay for the shares if no goodwill and no gain on a bargain purchase are reported? Acquisition price b. What amount did Parade pay for the shares if the fair value of the noncontrolling interest at acquisition is $32,500 and goodwill of $30,000 is reported? Acquisition price c. What balance will be assigned to the noncontrolling interest in the consolidated balance sheet if Parade pays $97,500 to acquire its ownership and goodwill of $30,000 is reported? Balance assigned to noncontrolling interest

Summer Company holds assets with a fair value of $122,000 and a book value of $93,000 and liabilities with a book value and fair value of $22,000. Required: Compute the following amounts if Parade Corporation acquires 75 percent ownership of Summer: a. What amount did Parade pay for the shares if no goodwill and no gain on a bargain purchase are reported? Acquisition price b. What amount did Parade pay for the shares if the fair value of the noncontrolling interest at acquisition is $32,500 and goodwill of $30,000 is reported? Acquisition price c. What balance will be assigned to the noncontrolling interest in the consolidated balance sheet if Parade pays $97,500 to acquire its ownership and goodwill of $30,000 is reported? Balance assigned to noncontrolling interest

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter9: Acquisitions Of Property

Section: Chapter Questions

Problem 44P

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