Problem 6-37 (Algo) (LO 6-7) Albuquerque, Incorporated, acquired 36,000 shares of Marmon Company several years ago for $900,000. At the acquisition date, Marmon reported a book value of $950,000, and Albuquerque assessed the fair value of the noncontrolling interest at $100,000. Any excess of acquisition-date fair value over book value was assigned to broadcast licenses with indefinite lives. Since the acquisition date and until this point, Marmon has issued no additional shares. No impairment has been recognized for the broadcast licenses. At the present time, Marmon reports $1,000,000 as total stockholders' equity, which is broken down as follows: Common stock ($12 par value) Additional paid-in capital Retained earnings $ 480,000 420,000 100,000 Total $ 1,000,000 View the following as independent situations: Required: a. & b. Marmon sells 8,000 and 5,000 shares of previously unissued common stock to the public for $30 and $20 per share. Albuquerque purchased none of this stock. What journal entry should Albuquerque make to recognize the impact of this stock transaction? Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round your intermediate calculations. View transaction list
Problem 6-37 (Algo) (LO 6-7) Albuquerque, Incorporated, acquired 36,000 shares of Marmon Company several years ago for $900,000. At the acquisition date, Marmon reported a book value of $950,000, and Albuquerque assessed the fair value of the noncontrolling interest at $100,000. Any excess of acquisition-date fair value over book value was assigned to broadcast licenses with indefinite lives. Since the acquisition date and until this point, Marmon has issued no additional shares. No impairment has been recognized for the broadcast licenses. At the present time, Marmon reports $1,000,000 as total stockholders' equity, which is broken down as follows: Common stock ($12 par value) Additional paid-in capital Retained earnings $ 480,000 420,000 100,000 Total $ 1,000,000 View the following as independent situations: Required: a. & b. Marmon sells 8,000 and 5,000 shares of previously unissued common stock to the public for $30 and $20 per share. Albuquerque purchased none of this stock. What journal entry should Albuquerque make to recognize the impact of this stock transaction? Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round your intermediate calculations. View transaction list
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Problem 6-37 (Algo) (LO 6-7)
Albuquerque, Incorporated, acquired 36,000 shares of Marmon Company several years ago for $900,000. At the acquisition date,
Marmon reported a book value of $950,000, and Albuquerque assessed the fair value of the noncontrolling interest at $100,000. Any
excess of acquisition-date fair value over book value was assigned to broadcast licenses with indefinite lives. Since the acquisition
date and until this point, Marmon has issued no additional shares. No impairment has been recognized for the broadcast licenses.
At the present time, Marmon reports $1,000,000 as total stockholders' equity, which is broken down as follows:
Common stock ($12 par value)
Additional paid-in capital
Retained earnings
$ 480,000
420,000
100,000
Total
$ 1,000,000
View the following as independent situations:
Required:
a. & b. Marmon sells 8,000 and 5,000 shares of previously unissued common stock to the public for $30 and $20 per share.
Albuquerque purchased none of this stock. What journal entry should Albuquerque make to recognize the impact of this stock
transaction?
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round your
intermediate calculations.
View transaction list
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