On January 1, 2024, Coronado Company purchased 8,208 shares of Whispering Company's common stock for $124,000. Immediatelyafter the stock acquisition, the statements of financial position of Coronado and Whispering appeared as follows:AssetsCashAccounts receivableInventoryInvestment in Whispering CompanyPlant assetsAccumulated depreciation-plant assetsTotalLiabilities and Owners' EquityCurrent liabilitiesMortgage notes payableCommon stock, $10 par valueOther contributed capitalRetained earningsTotal(a2)Coronado$38,25057,31042,270124,000144,750(56,310)$350,270:Whispering$17,17028,62025,000107,510(19,510)$158,790$17,08040,190111,980$126,26054,760$350,270Prepare a schedule to compute the difference between book value of equity and the value implied by the purchase price. Anydifference between the book value of equity and the value implied by the purchase price relates to subsidiary plant assets.ParentShare$$26,620$102,60016,79012,780$158,790Non-ControllingShare

Parent company - The parent company is an entity that owns or controls another entity, known as a…

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.

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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

On January 1, 2024, Coronado Company purchased 8,208 shares of Whispering Company's common stock for $124,000. Immediately
after the stock acquisition, the statements of financial position of Coronado and Whispering appeared as follows:
Assets
Cash
Accounts receivable
Inventory
Investment in Whispering Company
Plant assets
Accumulated depreciation-plant assets
Total
Liabilities and Owners' Equity
Current liabilities
Mortgage notes payable
Common stock, $10 par value
Other contributed capital
Retained earnings
Total
(a2)
Coronado
$38,250
57,310
42,270
124,000
144,750
(56,310)
$350,270
:
Whispering
$17,170
28,620
25,000
107,510
(19,510)
$158,790
$17,080
40,190
111,980
$
126,260
54,760
$350,270
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.
Parent
Share
$
$26,620
$
102,600
16,790
12,780
$158,790
Non-
Controlling
Share

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