Hepner Corporation has the following stockholders’ equity accounts:         Preferred stock (8% cumulative dividend) $ 660,000 Common stock   910,000 Additional paid-in capital   460,000 Retained earnings   1,110,000     The preferred stock is participating. Wasatch Corporation buys 70 percent of this common stock for $1,820,000 and 60 percent of the preferred stock for $810,000. The acquisition-date fair value of the noncontrolling interest in the common shares was $780,000 and was $540,000 for the preferred shares. All of the subsidiary’s assets and liabilities are viewed as having fair values equal to their book values.   What amount is attributed to goodwill on the date of acquisition?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Hepner Corporation has the following stockholders’ equity accounts:

 

     
Preferred stock (8% cumulative dividend) $ 660,000
Common stock   910,000
Additional paid-in capital   460,000
Retained earnings   1,110,000
 

 

The preferred stock is participating. Wasatch Corporation buys 70 percent of this common stock for $1,820,000 and 60 percent of the preferred stock for $810,000. The acquisition-date fair value of the noncontrolling interest in the common shares was $780,000 and was $540,000 for the preferred shares. All of the subsidiary’s assets and liabilities are viewed as having fair values equal to their book values.

 

What amount is attributed to goodwill on the date of acquisition?

Goodwill:

 

 

 

 
 
 
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