Amie, Inc., has 100,000 shares of $2 par value stock outstanding. Prairie Corporation acquired 30,000 of Amies shares on January 1, 2009, for $120,000 when Amie s net asset had a total fair value of $350,000. On July 1, 2012, Prairie agreed to buy an additional 60,000 shares of Amie from a single stockholders for $6 per share. Although Amie s shares were selling in the $5 range around July 1, 2012, Prairie forecasted that obtaining control for Amie would produce significant revenue synergies to justify the premium price paid. If Amie s net identifiable assets had a fair value of $500,000 at July 1, 2012, how much goodwill should Prairie report in its post combination consolidated balance sheet? a. $60,000 b. $90,000 c. $100,000 d. $-0-
Amie, Inc., has 100,000 shares of $2 par value stock outstanding. Prairie Corporation acquired 30,000 of Amies shares on January 1, 2009, for $120,000 when Amie s net asset had a total fair value of $350,000. On July 1, 2012, Prairie agreed to buy an additional 60,000 shares of Amie from a single stockholders for $6 per share. Although Amie s shares were selling in the $5 range around July 1, 2012, Prairie forecasted that obtaining control for Amie would produce significant revenue synergies to justify the premium price paid. If Amie s net identifiable assets had a fair value of $500,000 at July 1, 2012, how much goodwill should Prairie report in its post combination consolidated balance sheet? a. $60,000 b. $90,000 c. $100,000 d. $-0-
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 1MC
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Can you please answer the general accounting question?
![Amie, Inc., has 100,000 shares of $2 par value stock outstanding.
Prairie Corporation acquired 30,000 of Amies shares on January
1, 2009, for $120,000 when Amie s net asset had a total fair value
of $350,000. On July 1, 2012, Prairie agreed to buy an additional
60,000 shares of Amie from a single stockholders for $6 per share.
Although Amie s shares were selling in the $5 range around July
1, 2012, Prairie forecasted that obtaining control for Amie would
produce significant revenue synergies to justify the premium
price paid. If Amie s net identifiable assets had a fair value of
$500,000 at July 1, 2012, how much goodwill should Prairie report
in its post combination consolidated balance sheet?
a. $60,000
b. $90,000
c. $100,000
d. $-0-](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0cc6aa63-5762-473b-92a4-7b58dd6d4d17%2Fbfbb3f82-e0fd-48e4-8f69-b601dab00405%2F0i3i4g_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Amie, Inc., has 100,000 shares of $2 par value stock outstanding.
Prairie Corporation acquired 30,000 of Amies shares on January
1, 2009, for $120,000 when Amie s net asset had a total fair value
of $350,000. On July 1, 2012, Prairie agreed to buy an additional
60,000 shares of Amie from a single stockholders for $6 per share.
Although Amie s shares were selling in the $5 range around July
1, 2012, Prairie forecasted that obtaining control for Amie would
produce significant revenue synergies to justify the premium
price paid. If Amie s net identifiable assets had a fair value of
$500,000 at July 1, 2012, how much goodwill should Prairie report
in its post combination consolidated balance sheet?
a. $60,000
b. $90,000
c. $100,000
d. $-0-
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