Protec Company acquired 75% of Sussex Company's voting stock for $40,000 in cash. The noncontrolling interest had an estimated fair value of $11,000. Some ofSussex's identifiable assets and liabilities at the date of acquisition had fair values that were different from reported values, as follows:Book Value Fair Value$2,000$ 8,00025,000Property, netIdentifiable intangiblesSussex's total shareholders' equity at the date of acquisition was as follows:Capital stock$1,000Retained earningsTreasury stockTotal3,000(100)$3,900 On a date-of-acquisition consolidation working paper, eliminating entry (E) credits Investment in Sussex in the amount ofSelect one:OOOa. $3,900b. $4,100c. $3,075d. $2,925

In a consolidation process, when one company acquires a controlling interest in another company, the…

Protec Company acquired 75% of Sussex Company's voting stock for $40,000 in cash. The noncontrolling interest had an estimated fair value of $11,000. Some of Sussex's identifiable assets and liabilities at the date of acquisition had fair values that were different from reported values, as follows: Book Value Fair Value $2,000 $8,000 0 25,000 Property, net Identifiable intangibles Sussex's total shareholders' equity at the date of acquisition was as follows: Capital stock $1,000 Retained earnings Treasury stock Total 3,000 (100) $3,900

Protec Company acquired 75% of Sussex Company's voting stock for $40,000 in cash. The noncontrolling interest had an estimated fair value of $11,000. Some of Sussex's identifiable assets and liabilities at the date of acquisition had fair values that were different from reported values, as follows: Book Value Fair Value $2,000 $8,000 0 25,000 Property, net Identifiable intangibles Sussex's total shareholders' equity at the date of acquisition was as follows: Capital stock $1,000 Retained earnings Treasury stock Total 3,000 (100) $3,900

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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