On January 1, 2014, Woody Company acquires 80% of the outstanding common stock of Buzz, for a purchase price of $785,000. It was determined that the fair market value of the noncontrolling interest in the subsidiary is $190,000. The book value of the Buzz’s stockholders’ equity on the date of acquisition is $500,000 and its fair market value of identifiable tangible and intangible assets is $900,000. The excess fair market value over book value is allocated $200,000 to equipment with a remaining useful life of 10 years, and $200,000 to a patent with a remaining useful life of 8 years. What portion of the AAP should be assigned to noncontrolling interest?
How to get the answer of 90,000?
Hi
Let me know in case you face any issue:
On January 1, 2014, Woody Company acquires 80% of the outstanding common stock of Buzz, for...
On January 1, 2017, Franklin Company acquires 80% of the outstanding common stock of LaSalle, for a purchase price of $970,000. It was determined that the fair value of the noncontrolling interest in the subsidiary is $240,000. The book value of the LaSalle’s stockholders’ equity on the date of acquisition is $700,000 and its fair value of net assets is $1,100,000. The acquisition-date acquisition accounting premium (AAP) is allocated $250,000 to equipment with a remaining useful life of 10 years,...
17 On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $66,312. Calvin Co. has one recorded asset, a specialized production machine with a book value of $14,000 and no liabilities. The fair value of the machine is $100,000, and the remaining useful life is estimated to be 10 years. Any remaining excess fair value is attributable to an unrecorded process trade secret with an estimated future life of 4 years. Calvin's total acquisition date...
On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $61,680. Calvin Co. has one recorded asset, a specialized production machine with a book value of $18,200 and no liabilities. The fair value of the machine is $92,200, and the remaining useful life is estimated to be 10 years. Any remaining excess fair value is attributable to an unrecorded process trade secret with an estimated future life of 4 years. Calvin’s total acquisition date fair...
On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $57.732. Calvin Co has one recorded asset, a specialized production machine with a book value of $10,300 and no liabilities. The fair value of the machine is $82.300, and the remaining useful life is estimated to be 10 years. Any remaining excess fair value is attributable to an unrecorded process trade secret with an estimated future life of 4 years. Calvin's total acquisition date fair...
On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $60,576. Calvin Co. has one recorded asset, a specialized production machine with a book value of $10,000 and no liabilities. The fair value of the machine is $90,000, and the remaining useful life is estimated to be 10 years. Any remaining excess fair value is attributable to an unrecorded process trade secret with an estimated future life of 4 years. Calvin's total acquisition date fair...
Check my wo On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $45,780. Calvin Co. has one recorded asset, a specialized production machine with a book value of $13,400 and no liabilities. The fair value of the machine is $ 64,900, and the remaining useful life is estimated to be 10 years. Any remaining excess fair value is attributable to an unrecorded process trade secret with an estimated future life of 4 years. Calvin's...
#8) On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $45,948. Calvin Co. has one recorded asset, a specialized production machine with a book value of $14,900 and no liabilities. The fair value of the machine is $65,900, and the remaining useful life is estimated to be 10 years. Any remaining excess fair value is attributable to an unrecorded process trade secret with an estimated future life of 4 years. Calvin’s total acquisition date...
On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $52,608. Calvin Co. has one recorded asset, a specialized production machine with a book value of $13,300 and no liabilities. The fair value of the machine is $73,800, and the remaining useful life is estimated to be 10 years. Any remaining excess fair value is attributable to an unrecorded process trade secret with an estimated future life of 4 years. Calvin's total acquisition date fair...
28. Plaza, Inc., acquires 80 percent of the outstanding common stock of Stanford Corporation on January 1, 2018, in exchange for $900,000 cash. At the acquisition date, Stanford’s total fair value, including the noncontrolling interest, was assessed at $1,125,000. Also at the acquisition date, Stanford’s book value was $690,000. Several individual items on Stanford’s financial records had fair values that differed from their book values as follows: BOOK VALUE FAIR VALUE Tradenames (indefinite life) . . . . ....
On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $51,612 Calvin Co. has one recorded asset, a speclalized production machine with a book value of $19,200 and no lablities. The falr value of the machine is $75,700, and the remalning useful life Is estlmated to be 10 years. Any remalning excess falr value is attributable to an unrecorded process trade secret wlth an estlmated future life of 4 years. Calvin's total acquisition date fair...