Reference no: EM132463279
Question 1. Pardata purchased all of the shares of Subco for $30 million in cash. The balance sheets of Pardata and Subco just after the acquisition appear below, along with fair value information for Subco's net assets.
Pardata Subco
Book Value Book Value Fair Value
Dr (Cr)
Current assets $ 10,000,000 $ 5,000,000 $ 4,000,000
Plant assets 40,000,000 36,000,000 25,000,000
Identifiable intangible assets
Investment in Subco
Liabilities (35,000,000) (37,800,000) (37,500,000)
Capital stock
(30,000,000) (5,000,000)
Retained earnings (15,600,000) 1,500,000
Treasury stock 100,000 100,000
Accumulated other comprehensive loss 500,000 200,000
Total $ 0 $ 0
Problem a) Prepare the analysis to substantiate goodwill, if any. Clearly label all numerical values.