Find solutions for your homework business accounting accounting questions and answers on january 1, 2018 moonlight company paid $8.50 per share to acquire 60% of the 100,000 voting common stock of star company whose shares are trading at $7.00. star's building is undervalued by $30,000 with 5 years remaining useful life. the following information is available under this acquisition: total controlling interest (60%) $510,000 noncontrolling Question: On January 1, 2018 Moonlight Company Paid $8.50 Per Share To Acquire 60% Of The 100,000 Voting Common Stock Of Star Company Whose Shares Are Trading At $7.00. Star's Building Is Undervalued By $30,000 With 5 Years Remaining Useful Life. The Following Information Is Available Under This Acquisition: Total Controlling Interest (60%) $510,000 Noncontrolling This problem has been solved! See the answer Show transcribed image text Expert Answer No of share bought by moonlight= 100000*.6 =60000 (A) excess price paid by moonlight on the basis of…View the full answer Transcribed image text: On January 1, 2018 Moonlight Company paid $8.50 per share to acquire 60% of the 100,000 voting common stock of Star Company whose shares are trading at $7.00. Star's building is undervalued by $30,000 with 5 years remaining useful life. The following information is available under this acquisition: Total Controlling Interest (60%) $510,000 Noncontrolling Interest (40%) $280,000 $790,000 Fair value at acquisition Fair value of Star identifiable net assets Goodwill 665,000 (A) Briefly explain the effects of the excess price paid by Moonlight over the trading value of Star's shares on both: - goodwill and consolidation entries. (B) Calculate the goodwill to be allocated to controlling and noncontrolling interest and prepare consolidation entry 'A' that is appropraite in the above case.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Find solutions for your homework business accounting accounting questions and answers on january 1, 2018 moonlight company paid $8.50 per share to acquire 60% of the 100,000 voting common stock of star company whose shares are trading at $7.00. star's building is undervalued by $30,000 with 5 years remaining useful life. the following information is available under this acquisition: total controlling interest (60%) $510,000 noncontrolling Question: On January 1, 2018 Moonlight Company Paid $8.50 Per Share To Acquire 60% Of The 100,000 Voting Common Stock Of Star Company Whose Shares Are Trading At $7.00. Star's Building Is Undervalued By $30,000 With 5 Years Remaining Useful Life. The Following Information Is Available Under This Acquisition: Total Controlling Interest (60%) $510,000 Noncontrolling This problem has been solved! See the answer Show transcribed image text Expert Answer No of share bought by moonlight= 100000*.6 =60000 (A) excess price paid by moonlight on the basis of…View the full answer Transcribed image text: On January 1, 2018 Moonlight Company paid $8.50 per share to acquire 60% of the 100,000 voting common stock of Star Company whose shares are trading at $7.00. Star's building is undervalued by $30,000 with 5 years remaining useful life. The following information is available under this acquisition: Total Controlling Interest (60%) $510,000 Noncontrolling Interest (40%) $280,000 $790,000 Fair value at acquisition Fair value of Star identifiable net assets Goodwill 665,000 (A) Briefly explain the effects of the excess price paid by Moonlight over the trading value of Star's shares on both: - goodwill and consolidation entries. (B) Calculate the goodwill to be allocated to controlling and noncontrolling interest and prepare consolidation entry 'A' that is appropraite in the above case.

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