Fair values within the companys financial statements

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On January 1, Tesco Company spent a total of $4,557,000 to acquire control over Blondel Company. This price was based on paying $462,000 for 20 percent of Blondel's preferred stock and $4,095,000 for 90 percent of its outstanding common stock. At the acquisition date, the fair value of the 10 percent noncontrolling interest in Blondel's common stock was $455,000. The fair value of the 80 percent of Blondel's preferred shares not owned by Tesco was $1,848,000. Blondel's stockholders' equity accounts at January 1 were as follows:

Preferred stock-9%, $100 par value, cumulative and participating;

       10,000 shares outstanding

$ 1,000,000   
  Common stock-$50 par value; 40,000 shares outstanding      2,000,000   
  Retained earnings   3,650,000   
    
  Total stockholders' equity $ 6,650,000   

Tesco believes that all of Blondel's accounts approximate their fair values within the company's financial statements. What amount of consolidated goodwill should be recognized?

Reference no: EM131775493

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