Business, 14.04.2020 18:14 goosenar

Summer Company holds assets with a fair value of $120,000 and a book value of $87,000 and liabilities with a book value and fair value of $24,000.

Required:
Compute the following amounts if Parade Corporation acquires 80 percent ownership of Summer:

a. What amount did Parade pay for the shares if no goodwill and no gain on a bargain purchase are reported?
b. What amount did Brad pay for the shares if the fair value of the non-controlling interest at acquisition is S54,000 and goodwill of S40,000 is reported?
c. What balance will be assigned to the non-controlling interest in the consolidated balance sheet if Brad pays S73,200 to acquire its ownership and goodwill of S27,000 is reported?

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Summer Company holds assets with a fair value of $120,000 and a book value of $87,000 and liabilitie...

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