A and b companies have been operating separately for five

Assignment Help Accounting Basics

Reference no: EM13596237

A and B Companies have been operating separately for five years. Each company has a minimal amount of liabilities and a simple capital structure consisting solely of voting common stock. A Company, in exchange for 40 percent of its voting stock, acquires 80 percent of the common stock of B Company. This is a "tax-free" stock-for-stock (type B) exchange for tax purposes. B Company assets have a total net fair market value of $800,000 and a total net book value of $580,000. The fair market value of the A stock used in the exchange is $700,000 and the fair value of the noncontrolling interest is $175,000. What would the goodwill reported following the acquisition be? Please show calculations.

Reference no: EM13596237

Questions Cloud

Wesser inc has written off a 2000 account as noncollectable : wesser inc. has written off a 2000 account as noncollectable. the balance in accounts receivable was 271000 and the

Solve by gauss elimination with partial pivoting show all : given the equations2x1 - 6x2 - x3 - 38- 3x1 - x2 7x3 - 34- 8x1 x2 - 2x3 - 20a solve by gauss elimination with

Assume that the average firm in your company industry is : assume that the average firm in your company industry is expected to a constant rate of 6 and that the dividend is 7.

Find the magnitude and direction relative to forward : question a rocket fires two engines simultaneously. one produces a thrust of 725n directly forward while the other

A and b companies have been operating separately for five : a and b companies have been operating separately for five years. each company has a minimal amount of liabilities and a

What is the boiling point at 1000 atm pressure of a : what is the boiling point at 1.000 atm pressure of a solution of 1.50 mol of nacl dissolved in 1.00 kg of water

What is the distance between the two aircrafts place the : question air traffic observes two aircrafts on his radar screen. the first is at an altitude 800m horizontal distance

For the past several years dustin larkin has operated a : for the past several years dustin larkin has operated a part-time consulting business from his home. as of june 1 2010

The rate constant for a certain chemical reaction is : the rate constant for a certain chemical reaction is 0.00250 l mol-1 s-1 at 25.0 c and 0.0125 l mol-1 s-1 at 50.0 degc.

User Account

All Pages