Book value of equity aquired and value implied

Reference no: EM13147592

On january 1, 2010 porter company purchased an 80% interest in the capital stock of salem company for 850000. at that time, salem company had a capital stock for %550,000 and retained earnings for $80,000. Differences between the fair value and the book value of the identifiable assets are salem company were as follows. Equipment $130,000

Land 65000, and inventory 40,000. The book values of all other assets and liabilities of salem company were equal to their fair values on january 1,2010. The equipment had a remaining life of five years n Jan1. The inventory was sold in 2010. 2010 net income $100,000; dividends declared of $25,000. 2011 net incoe $110,000; dividends declared $35,000

Prepare a computation and allocation schedule for the difference between book value of equity aquired and the value implied by the pruchase price.

Reference no: EM13147592

Questions Cloud

How many milliliters of .200 m naoh are needed : How many milliliters of .200 m NaOH are needed to neutralize 100.ml of .100 m HCl

What is your bottom line in negotiations with the telecom : What is your bottom line in negotiations with the telecom? Suppose you agree on a price slightly above your bottom line.

Compute the total noncontrolling interest : Compute the total noncontrolling interest to be reported in the consolidated balance sheet assuming the:

Broken windows theory and how it can be used to reduce crime : Identify and Describe Broken Windows Theory and how it can be used to reduce crime.

Book value of equity aquired and value implied : Prepare a computation and allocation schedule for the difference between book value of equity aquired and the value implied by the pruchase price.

What is the concentration of a solution of lithium carbonate : What is the concentration of a solution of lithium carbonate containing 0.01 mol in 750 mL of solution? Give your answer to two significant figures and include the units as mol L-1 ie 0.36 mol L-1

Percentage of adults-said second-hand smoke is very harmful : How would to solve this statistics question. In a gallop pill of 1,038 adults ,540 said that second-hand smoke is very harmful. What percentage of adults who said second-hand smoke is very harmful?

Calculate the mole fraction of the chloroform : The vapor pressure of carbon tetrachloride, , is 0.354 atm and the vapor pressure of chloroform, is 0.526 atm at 316K . A solution is prepared from equal masses of these two compounds at this temperature

Appropriate month-end adjusting entry : At the beginning of December, Global Corporation had $2,100 in supplies on hand. During the month, supplies purchased amounted to $3,800, but by the end of the month the supplies balance was only $1,300. What is the appropriate month-end adjusting..

User Account

All Pages