Using the fair value to measure no controlling interest

Assignment Help Financial Accounting

Reference no: EM13754508

On January 1, 2014, A company acquired 60% of the outstanding shares of B company by paying $1.2 Million in cash, the fair value of B's identifiable asset and liability is $2 million and $ 0.5 million respectively.

Requirements: Determine the following amounts at which A company should recognize goodwill from this business combination.

1) Using the proportionate share of acquired firm's net assets to measure non-controlling interest.

2) Using the fair value to measure no controlling interest.

Reference no: EM13754508

Questions Cloud

What major achievement in human history during old stone age : What were the major achievements in human history during the Old Stone Age?

Create lists of case details that fit each side of triangle : Create lists of case details that fit each side of the triangle. Then look at each item and think about how that item affects the other sides of the triangle

Prepare a classified balance sheet for the year ended : Flip Company's December 31, 2014 trial balance is as follows: Flip Corporation Trial Balance December 31, 2014 Account Debit Credit Cash $43,500 Accounts Receivable 54,500 Allowance for Doubtful Accounts 500 Notes Receivable 30,000 Merchandise Invent..

Accounting and economic definition of profit : What are the differences between accounting and economic definition of profit? Give a detailed response.

Using the fair value to measure no controlling interest : On January 1, 2014, A company acquired 60% of the outstanding shares of B company by paying $1.2 Million in cash, the fair value of B's identifiable asset and liability is $2 million and $ 0.5 million respectively. Using the fair value to measure no ..

Difference in total dollars : Calculate the difference in payments on a 30-year mortgage at 9% interest versus a 15-year mortgage with 8.5% interest. Both mortgages are for $300,000 and have monthly payments. What is the difference in total dollars that will be paid to the len..

Memorandum format : Write a one-page action plan, in memorandum format, discussing how you would obtain an understanding of key business processes of a company that hires you to provide financial services. The memorandum should specify an industry, a product, and one se..

Why did the great depression happen : why did the great depression happen? Why did it last for so long?

Interest and savings : If an initial bank deposit of $5,000 yields an account value of $12,000 at the end of 10 years, what is the interest rate at work? If an initial deposit of $250,000 is made into an escrow account that pays 9% interest annually, what is the maximum am..

User Account

All Pages