X company acquired 90% of the voting stock of company Y by paying $75,000 in cash and stock. The fair value of the noncontrolling interest is $20,000. The book value of Y company is $56,000. Calculate the percentage of total goodwill that is allocated to the controlling interest according to U.S. GAAP? (Assume that no revaluations of acquired identifiable net assets is required.) A) 63% B) 67% C) 75% D) 90%

X company acquired 90% of the voting stock of company Y by paying $75,000 in cash and stock. The fair value of the noncontrolling interest is $20,000. The book value of Y company is $56,000. Calculate the percentage of total goodwill that is allocated to the controlling interest according to U.S. GAAP? (Assume that no revaluations of acquired identifiable net assets is required.) A) 63% B) 67% C) 75% D) 90%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

On 1 November 2020, Bermuda Ltd acquired all the assets and fiabilities (other than cash) of Triangle Ltd. The details on the assets and liabilities of Triangle Ltd were as follows: Carrying Fair Value Amount Cash 30,000 30,000 Equipment 120,000 140,000 Accounts Receivable 25,000 25,000 Furniture 35,000 25,000 Accounts Payable 10,000 10,000 Income tax 19,000 19,000 Payable Annual Leave 14,000 14,000 Payable In addition to the above items Triangle Ltd had an internally generated brand name with a fair value of $75,000 that was not recognised in its accounts. The consideration Bermuda Ltd paid to Triangle Ltd was $80,000 cash and 20,000 shares. The fair value of each Bermuda Ltd share is $10. Bermuda Ltd paid $20,000 in acquisition to ic 30%
Sub Corporation reports net assets of P300,000 at book value. These net assets have an estimated fair value of P350,000. Parent Corporation buys 80% ownership of Sub for P300,000; there is a control premium of P10,000 included in the purchase price.Of the goodwill reported in the consolidated balance sheet (as of date of acquisition), how much is attributable to the non-controlling interest? A. 3,000 B. 5,000 C. 2,500 D. 4,500
B8.
PP-SS
7. ABC Corporation acquired 70 percent of XYZ Corporation on August 1 for P420,000. On that date, XYZ Corporation had the following book values and market values. What is the amount of non-controlling interest on the acquisition date consolidated balance sheet?
BTS Corporation reports net assets of P300,000 at book value. These net assets have an estimated fair value of P350,000. TWICE Corporation buys 80% ownership of BTS for P300,000; there is a control premium of P10,000 included in the purchase price.Of the goodwill reported in the consolidated balance sheet (as of date of acquisition), how much is attributable to the non-controlling interest? 3,000 2,500 4,500 5,000
.41
L2-4 Awe Company pays CU500,000,000 for a 30% interest in Groy Company on July 1, 19x2 when the book value of Groy Company's net assets equals fair value. Awe Company amortizes any goodwill from this investment over 20 years. Information related to Groy Company is as follows: 31 Desember 19x1 31 Desember 19x2 Share capital, nominal IDR 1,000 Rp600.000.000 Rp600.000.000 Retained earning 400.000.000 500.000.000 Total Shareholders' Equity 1.000.000.000 1.100.000.000 Net profit earned during the year 19x2 200.000.000 Dividend for the year 19x2 (paid on March 1 of Rp. 50,000,000 and September 1 of Rp. 50,000,000) 100.000.000 Required: calculate Awe Company's revenue from Groy Company for the year 19x2
Subject: AFAR
Hello Corp. acquired 80% of outstanding shares of Piknik Inc. the stock acquisition resulted to a goodwill of P700,000. The consideration transferred by Xiao Long Bao Corp. and fair value of net assets of Piknik Inc. amounted to P4,200,000 and 4,500,000, respectively. How much is the control premium? a. 100,000 b. 200,000 c. 1,000,000 d. None of the above
Hoolia Corporation acquires equipment and patents from another company for $50 million and records the acquisition as an asset acquisition. The equipment has a fair value of $19.20 million and the patents have a fair value of $28.80 million. Neither asset is nonqualifying. At what value does Hoolia record the equipment? Select one: a. $25.0 million b. $20.0 million c. $21.2 million d. $19.2 million