Extra paid-in capital of parent company

Assignment Help Cost Accounting

Reference no: EM1376801

Popper Co. acquired 80 percent of the common stock of Cocker Co. on 1^st January, 2009, when Cocker had the subsequent stockholders' equity accounts.

To get this interest in Cocker, Popper paid a total of $682,000 with any excess acquisition date fair value over book value being allocated to goodwill, which has been calculated for impairment annually and has not been evaluated to be impaired as of January 1, 2012.
On 1^st January, 2012, Cocker reported a net book value of $1,113,000 before the subsequent transactions were conducted. Popper uses equity method to account for its investment in Cocker, thereby reflecting change in book value of Cocker.

On 1^st January, 2012, Cocker issued 10,000 additional shares of common stock for $21 per share. Popper did not get any of this newly issued stock. How would this transaction affect the extra paid-in capital of parent company?

Reference no: EM1376801

Questions Cloud

Compute the net cash from operating activities : Compute the net cash from operating activities based on the above information - Amazing Glory, Inc. knew a net income of $95,000 including $20,500 in depreciation expense.

Elucidate how do individuals affect organizations : Why is organizational behaviour model important in management. Elucidate how do individuals affect organizations? Elucidate how does organization affect individuals.

Line of furniture manufactured from recycled : Select one of the following products- line of furniture manufactured from recycled as well as reclaimed materials, custom designed jewellery, handicraft supplies, or talk radio show

Strategies and for providing security patient medical record : The answer gives the learner with a detailed overview with the concepts, strategies, and recommendations for giving security to patient medical records in a service related Health Care organization.

Extra paid-in capital of parent company : Popper did not get any of this newly issued stock. How would this transaction affect the extra paid-in capital of parent company?

Llustrate what steps would you take before hiring : Suppose you want to build a fitness club. Illustrate what steps would you take before hiring or even talking to an architect.

Cost of goods sold for next month : Rhinestone Company has a sales budget for subsequently month of $300,000 - the cost of goods sold for next month is expected to be

Presume that the market doesn''t allow arbitrage strategies : presume that the market doesn't allow arbitrage strategies and therefore the two-factor APT holds. Find the expected revenues on factor 1 and factor 2

Lucidate how will this influence decision : This is a long-term, strategic decision; illustrate what factors might change in next 10 to 20 years. Elucidate how will this influence decision.

User Account

All Pages