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Prepare a schedule to compute the difference between book value of equity and the value implied by the purchase price. Any difference between the book value of equity and the value implied by the purchase price relates to subsidiary plant assets. Purchase Price and Implied Value Less : Book Value of Equity Acquired Common Stock Other Contributed Capital Retained Earnings Total Book Value Difference Between Implied and Book Value Plant Assets Balance > Parent Share +A $ $ 132,000 132,000 143 +A Non- Controlling Share 30,370 S +A $ 30,370 On January 1, 2024, Metlock Company purchased 7,400 shares of Bonita Company's common stock for $132,000. Immediately after the stock acquisition, the statements of financial position of Metlock and Bonita appeared as follows: Assets Metlock Bonita Cash $42,000 $17,400 Accounts receivable 52,380 32,550 Inventory 38,080 25,190 Investment in Bonita Company 132,000 Plant assets 154,140 105,930 Accumulated depreciation-plant assets (47,800) (18,700) Total $370,800 $162,370 Liabilities and Owners' Equity Current liabilities $19,220 $24,570 Mortgage notes payable 37,450 Common stock, $10 par value 125,730 92,500 Other contributed capital 143,170 16,060 Retained earnings 45,230 29,240 Total $370,800 $162,370

Prepare a schedule to compute the difference between book value of equity and the value implied by the purchase price. Any difference between the book value of equity and the value implied by the purchase price relates to subsidiary plant assets. Purchase Price and Implied Value Less : Book Value of Equity Acquired Common Stock Other Contributed Capital Retained Earnings Total Book Value Difference Between Implied and Book Value Plant Assets Balance > Parent Share +A $ $ 132,000 132,000 143 +A Non- Controlling Share 30,370 S +A $ 30,370 On January 1, 2024, Metlock Company purchased 7,400 shares of Bonita Company's common stock for $132,000. Immediately after the stock acquisition, the statements of financial position of Metlock and Bonita appeared as follows: Assets Metlock Bonita Cash $42,000 $17,400 Accounts receivable 52,380 32,550 Inventory 38,080 25,190 Investment in Bonita Company 132,000 Plant assets 154,140 105,930 Accumulated depreciation-plant assets (47,800) (18,700) Total $370,800 $162,370 Liabilities and Owners' Equity Current liabilities $19,220 $24,570 Mortgage notes payable 37,450 Common stock, $10 par value 125,730 92,500 Other contributed capital 143,170 16,060 Retained earnings 45,230 29,240 Total $370,800 $162,370

Intermediate Accounting: Reporting And Analysis
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
Chapter12: Intangibles
Section: Chapter Questions
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Prepare a schedule to compute the difference between book value of equity and the value implied by the purchase price. Any difference between the book value of equity and the value implied by the purchase price relates to subsidiary plant assets. Purchase Price and Implied Value Less : Book Value of Equity Acquired Common Stock Other Contributed Capital Retained Earnings Total Book Value Difference Between Implied and Book Value Plant Assets Balance > Parent Share +A $ $ 132,000 132,000 143 +A Non- Controlling Share 30,370 S +A $ 30,370
Transcribed Image Text:Prepare a schedule to compute the difference between book value of equity and the value implied by the purchase price. Any difference between the book value of equity and the value implied by the purchase price relates to subsidiary plant assets. Purchase Price and Implied Value Less : Book Value of Equity Acquired Common Stock Other Contributed Capital Retained Earnings Total Book Value Difference Between Implied and Book Value Plant Assets Balance > Parent Share +A $ $ 132,000 132,000 143 +A Non- Controlling Share 30,370 S +A $ 30,370
On January 1, 2024, Metlock Company purchased 7,400 shares of Bonita Company's common stock for $132,000. Immediately after the stock acquisition, the statements of financial position of Metlock and Bonita appeared as follows: Assets Metlock Bonita Cash $42,000 $17,400 Accounts receivable 52,380 32,550 Inventory 38,080 25,190 Investment in Bonita Company 132,000 Plant assets 154,140 105,930 Accumulated depreciation-plant assets (47,800) (18,700) Total $370,800 $162,370 Liabilities and Owners' Equity Current liabilities $19,220 $24,570 Mortgage notes payable 37,450 Common stock, $10 par value 125,730 92,500 Other contributed capital 143,170 16,060 Retained earnings 45,230 29,240 Total $370,800 $162,370
Transcribed Image Text:On January 1, 2024, Metlock Company purchased 7,400 shares of Bonita Company's common stock for $132,000. Immediately after the stock acquisition, the statements of financial position of Metlock and Bonita appeared as follows: Assets Metlock Bonita Cash $42,000 $17,400 Accounts receivable 52,380 32,550 Inventory 38,080 25,190 Investment in Bonita Company 132,000 Plant assets 154,140 105,930 Accumulated depreciation-plant assets (47,800) (18,700) Total $370,800 $162,370 Liabilities and Owners' Equity Current liabilities $19,220 $24,570 Mortgage notes payable 37,450 Common stock, $10 par value 125,730 92,500 Other contributed capital 143,170 16,060 Retained earnings 45,230 29,240 Total $370,800 $162,370
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