Common stock-40,000 shares outstanding Additional paid-in capital. Retained earnings, 1/1/17. Total stockholders' equity. $100,000 75,000 540,000 $715,000
Problems 20 through 22 are based on the following information.
Neill Company purchases 80 percent of the common stock of Stamford Company on January 1, 2017, when Stamford has the following
To acquire this interest in Stamford, Neill pays a total of $592,000. The acquisition-date fair value of the 20 percent noncontrolling interest was $148,000. Any excess fair value was allocated to
On January 1, 2018, Stamford reports
View the following problems as independent situations:
On January 1, 2018, Stamford reacquires 8,000 of the outstanding shares of its own common stock for $24 per share. None of these shares belonged to Neill. How does this transaction affect the parent company’s Additional Paid-In Capital account?
a. Has no effect on it.
b. Decreases it by $55,000.
c. Decreases it by $35,000.
d. Decreases it by $28,000.
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