Minaj Company. gained control of the Zen Company through the purchase of shares in the company as follows: 5,000 shares from the market, cost of goods $635,000 2,500 shares directly from the company at a price of 130 per share $325,000 Total investation $960,000 Before the Zen Company shares were purchased by Minaj Company., Zen Company's capital was: Share capital, nominal $100 (10.00 authorized shares, 6,500 issued) $650,000 Additional paid in capital 300,000 $950,000 Less deficit $45,000 Total Equity $905,000 Determine from the above purchases: A). Cost of goods or book value that exceeds the investment B). Minority interests
Minaj Company. gained control of the Zen Company through the purchase of shares in the company as follows: 5,000 shares from the market, cost of goods $635,000 2,500 shares directly from the company at a price of 130 per share $325,000 Total investation $960,000 Before the Zen Company shares were purchased by Minaj Company., Zen Company's capital was: Share capital, nominal $100 (10.00 authorized shares, 6,500 issued) $650,000 Additional paid in capital 300,000 $950,000 Less deficit $45,000 Total Equity $905,000 Determine from the above purchases: A). Cost of goods or book value that exceeds the investment B). Minority interests
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Minaj Company. gained control of the Zen Company through the purchase of shares in the company as follows:
|
5,000 shares from the market, cost of goods |
$635,000 |
|
2,500 shares directly from the company at a price of 130 per share |
$325,000 |
|
Total investation |
$960,000 |
Before the Zen Company shares were purchased by Minaj Company., Zen Company's capital was:
|
Share capital, nominal $100 (10.00 authorized shares, 6,500 issued) |
$650,000 |
|
|
Additional paid in capital |
300,000 |
$950,000 |
|
Less deficit |
|
$45,000 |
|
Total Equity |
|
$905,000 |
Determine from the above purchases:
A). Cost of goods or book value that exceeds the investment
B). Minority interests
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