On January 1, Coldwater Company has a net book value of $2,133,000 as follows: 2,450 shares of preferred stock; pa...
On January 1, Coldwater Company has a net book value of $2,133,000 as follows:
| 2,450 shares of preferred stock; par value $100 per share; cumulative, nonparticipating, nonvoting; call value $108 per share | $ | 245,000 | ||
| 31,500 shares of common stock; par value $40 per share | 1,260,000 | |||
| Retained earnings | 628,000 | |||
| Total | $ | 2,133,000 | ||
Westmont Company acquires all outstanding preferred shares for $263,000 and 60 percent of the common stock for $1,191,840. The acquisition-date fair value of the noncontrolling interest in Coldwater’s common stock was $794,560. Westmont believed that one of Coldwater’s buildings, with a 12-year remaining life, was undervalued by $62,000 on the company’s financial records.
What amount of consolidated goodwill would be recognized from this acquisition?
-
$48,400.
-
$49,600.
-
$54,400.
-
$50,800.
Homework Answers
ANSWER
CORRECT OPTION IS (C)=$54,400.00
| Calculation of amount of consolidated goodwill would be recognized from this acquisition | |
| $ | |
| Consideration transferred for preferred stock | 263,000 .00 |
| Consideration transferred for common stock | 1,191,840.00 |
| Non controlling interest fair value for common | 794,560.00 |
| Acquisition-date fair value | 2,249,400.00 |
| Acquisition-date book value | (2,133,000.00) |
| Excess fair over book value | 116,400.00 |
| to building | 62,000 .00 |
| to goodwill | $ 54,400.00 |
_____________________________________________
If you have any query or any Explanation please ask me in the comment box, i am here to helps you.please give me positive rating.
*****************THANK YOU**************
Add Answer to:
On January 1, Coldwater Company has a net book value of $2,133,000 as follows: 2,450 shares of preferred stock; pa...
Smith, Inc., has the following stockholders’ equity accounts as of January 1, 2018: Preferred stock—$150 par,...
Smith, Inc., has the following stockholders’ equity accounts as of January 1, 2018: Preferred stock—$150 par, nonvoting and nonparticipating, 7% cumulative dividend $ 2,130,000 Common stock—$25 par value 4,130,000 Retained earnings 10,130,000 Haried Company purchases all of Smith's common stock on January 1, 2018, for $14,320,000. The preferred stock remains in the hands of outside parties. Any excess acquisition-date fair value will be assigned to franchise contracts with a 40-year remaining life. During 2018, Smith reports earning $580,000 in net...
Martinez Company has outstanding 2,400 shares of $100 par, 8% preferred stock and 14,400 shares of...
Martinez Company has outstanding 2,400 shares of $100 par, 8% preferred stock and 14,400 shares of $10 par value common. The following schedule shows the amount of dividends paid out over the last 4 years. Allocate the dividends to each type of stock under assumptions (a) and (b). Express your answers in per-share amounts using the format shown below Assumptions (a) Preferred, noncumulative, and nonparticipating (b) Preferred, cumulative, and fully participating Year Paid-out Preferred Common Preferred Common 2018 $12,000 $...
Sweet Company has outstanding 2,400 shares of $100 par, 6% preferred stock and 14,800 shares of...
Sweet Company has outstanding 2,400 shares of $100 par, 6% preferred stock and 14,800 shares of $10 par value common. The following schedule shows the amouot of dividends paid out over the last 4 ears Allocate the dividends to each type of stock under assumptions (a) and (b). Express your answers in per-share amounts using the format shown below. (Round the rate of participation to 4 decimal places, e.g. 1.4278%. Round answers to 2 decimal places, eg. $6.85.) Assumptions Preferred,...
Coronado Company has outstanding 2,600 shares of $100 par, 7% preferred stock and 14,600 shares of...
Coronado Company has outstanding 2,600 shares of $100 par, 7% preferred stock and 14,600 shares of $10 par value common. The following schedule shows the amount of dividends paid out over the last 4 years. Allocate the dividends to each type of stock under assumptions (a) and (b). Express your answers in per-share amounts using the format shown below. (Round the rate of participation to 4 decimal places, e.g.1.4278%. Round answers to 2 decimal places, e.g. $6.85.) Assumptions (a) Preferred,...
York's outstanding stock consists of 70,000 shares of noncumulative 8.5% preferred stock with a $5 par value and also 290,000 shares of common stock with a $1 par value.
York's outstanding stock consists of 70,000 shares of noncumulative 8.5% preferred stock with a $5 par value and also 290,000 shares of common stock with a $1 par value. During its first four years of operation, the corporation declared and paid the following total cash dividends. Year 1 total cash dividends $ 18,800 Year 2 total cash dividends 27,700 Year 3 total cash dividends 245,000 Year 4 total cash dividends 395,000 Exercise 11-10 Dividends on common and noncumulative preferred stock LO C2 Determine the amount of...
Flounder Company has outstanding 2,500 shares of $100 par, 6% preferred stock and 13,700 shares of...
Flounder Company has outstanding 2,500 shares of $100 par, 6% preferred stock and 13,700 shares of $10 par value common. The following schedule shows the amount of dividends paid out over the last 4 years. Allocate the dividends to each type of stock under assumptions (a) and (b). Express your answers in per-share amounts using the format shown below. (Round the rate of participation to 4 decimal places, e.g. 1.4278%. Round answers to 2 decimal places, e.g. $6.85.) Assumptions (b)...
Pearl Company has outstanding 2,300 shares of $100 par, 7% preferred stock and 14,400 shares of...
Pearl Company has outstanding 2,300 shares of $100 par, 7% preferred stock and 14,400 shares of $10 par value common. The following schedule shows the amount of dividends paid out over the last 4 years. Allocate the dividends to each type of stock under assumptions (a) and (b). Express your answers in per-share amounts using the format shown below. (Round the rate of participation to 4 decimal places, e.g.1.4278%. Round answers to 2 decimal places, e.g. $6.85.) Assumptions (a) (b)...
Flounder Company has outstanding 2,500 shares of $100 par, 6% preferred stock and 13,700 shares of...
Flounder Company has outstanding 2,500 shares of $100 par, 6% preferred stock and 13,700 shares of $10 par value common. The following schedule shows the amount of dividends paid out over the last 4 years. Allocate the dividends to each type of stock under assumptions (a) and (b). Express your answers in per-share amounts using the format shown below. (Round the rate of participation to 4 decimal places, e.g. 1.4278%. Round answers to 2 decimal places, e.g. $6.85.) Assumptions (b)...
Torino Company has 10,000 shares of $5 par value, 4% cumulative and nonparticipating preferred stock and...
Torino Company has 10,000 shares of $5 par value, 4% cumulative and nonparticipating preferred stock and 100,000 shares of $10 par value common stock outstanding. The company paid total cash dividends of $1,000 in its first year of operation. The cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders is: $2,000 $4,000 $0 $1,000 $3,000
The Northwest Corporation has outstanding 25,000 shares of 12 percent. $50 par value, noncumulative, nonparticipating preferred...
The Northwest Corporation has outstanding 25,000 shares of 12 percent. $50 par value, noncumulative, nonparticipating preferred stock and 100,000 authorized common shares of which 40,000 shares of $14 par value common stock are outstanding. The board of directors voted to distribute $125,000 as dividends in 2019, $164.000 in 2020, and $210,000 in 2021. (Round your answers to 2 decimal places.) 10 points BOOK 1. Compute the amount paid on each share of preferred stock in 2019 2. Compute the amount...
Sweet Company has outstanding 2,400 shares of $100 par, 6% preferred stock and 14,800 shares of $10 par value common. The following schedule shows the amouot of dividends paid out over the last 4 ears Allocate the dividends to each type of stock under assumptions (a) and (b). Express your answers in per-share amounts using the format shown below. (Round the rate of participation to 4 decimal places, e.g. 1.4278%. Round answers to 2 decimal places, eg. $6.85.) Assumptions Preferred,...
Flounder Company has outstanding 2,500 shares of $100 par, 6% preferred stock and 13,700 shares of $10 par value common. The following schedule shows the amount of dividends paid out over the last 4 years. Allocate the dividends to each type of stock under assumptions (a) and (b). Express your answers in per-share amounts using the format shown below. (Round the rate of participation to 4 decimal places, e.g. 1.4278%. Round answers to 2 decimal places, e.g. $6.85.) Assumptions (b)...
Pearl Company has outstanding 2,300 shares of $100 par, 7% preferred stock and 14,400 shares of $10 par value common. The following schedule shows the amount of dividends paid out over the last 4 years. Allocate the dividends to each type of stock under assumptions (a) and (b). Express your answers in per-share amounts using the format shown below. (Round the rate of participation to 4 decimal places, e.g.1.4278%. Round answers to 2 decimal places, e.g. $6.85.) Assumptions (a) (b)...
Flounder Company has outstanding 2,500 shares of $100 par, 6% preferred stock and 13,700 shares of $10 par value common. The following schedule shows the amount of dividends paid out over the last 4 years. Allocate the dividends to each type of stock under assumptions (a) and (b). Express your answers in per-share amounts using the format shown below. (Round the rate of participation to 4 decimal places, e.g. 1.4278%. Round answers to 2 decimal places, e.g. $6.85.) Assumptions (b)...
The Northwest Corporation has outstanding 25,000 shares of 12 percent. $50 par value, noncumulative, nonparticipating preferred stock and 100,000 authorized common shares of which 40,000 shares of $14 par value common stock are outstanding. The board of directors voted to distribute $125,000 as dividends in 2019, $164.000 in 2020, and $210,000 in 2021. (Round your answers to 2 decimal places.) 10 points BOOK 1. Compute the amount paid on each share of preferred stock in 2019 2. Compute the amount...
Most questions answered within 3 hours.
-
What is the frequency of the second hand of a clock, assuming it
is keeping correct...
asked 6 seconds ago -
Determine Heat of reaction (Hrxn) for: 2 C (s, graphite) + 3 H2
(g) ------> C2H6...
asked 18 minutes ago -
A 270 pF capacitor is charged to a potential difference of 120
V, and the charging...
asked 19 minutes ago -
1.8 zyLab training: Basics (Java)
While the zyLab platform can be used without training, a bit...
asked 22 minutes ago -
The figure below shows an electron passing between two charged
metal plates that create an 100...
asked 24 minutes ago -
A) Calculate the final temperature, in degrees Celsius,
if n and V do not change.
A...
asked 28 minutes ago -
Find the 60th percentile of a standard normal
distribution(3 decimal places) on StatCrunch
asked 41 minutes ago -
This week we discuss the properly classified Balance Sheet.
Recall that the value of assets is...
asked 41 minutes ago -
Determine the molar concentration of Cl- ions in a 1.00 M
solution of AgCl2- with no...
asked 46 minutes ago -
You work for a defense company in their characterization
department. Your superior brings you 0.5 g...
asked 55 minutes ago -
An elevator has a placard stating that the maximum capacity is
1600lb—10 passengers. So, 10 adult...
asked 59 minutes ago -
The special causes of variation ________.
A) cannot be identified
B) cannot be eliminated
C) cannot...
asked 1 hour ago