Try to answer it asap please!! On September 1, 2011, Parental, Inc. issued 30,000 shares [$1 par common stock, with market fair value of $20 per share, for the total fair value of $600,000 given] for 60,000 shares of 100,000 total shares [or 60% of voting shares] of Sample Co. in Seoul, obtaining an “effective” control. Parental also paid $50,000 in legal/accounting fees to accomplish the purchase. Both companies remain separate legal entities. On December 31, 2011, Parental, Inc. is preparing its consolidated balance sheet to include Sample Co. acquisition. As of the date of acquisition, the Sample Co.’s fair value of identifiable net assets of $830,000, while the net book value of $660,000, according to an independent valuation report. What was the total “Implied” fair value of the a

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On September 1, 2011, Parental, Inc. issued 30,000 shares [$1 par common stock, with market fair value of $20 per share, for the total fair value of $600,000 given] for 60,000 shares of 100,000 total shares [or 60% of voting shares] of Sample Co. in Seoul, obtaining an “effective” control. Parental also paid $50,000 in legal/accounting fees to accomplish the purchase. Both companies remain separate legal entities. On December 31, 2011, Parental, Inc. is preparing its consolidated balance sheet to include Sample Co. acquisition. As of the date of acquisition, the Sample Co.’s fair value of identifiable net assets of $830,000, while the net book value of $660,000, according to an independent valuation report. What was the total “Implied” fair value of the acquired firm?

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