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What amount did Parade pay for the shares

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Question - Summer Company holds assets with a fair value of $121,000 and a book value of $96,000 and liabilities with a book value and fair value of $26,000.

Required - Compute the following amounts if Parade Corporation acquires 80 percent ownership of Summer:

a. What amount did Parade pay for the shares if no goodwill and no gain on a bargain purchase are reported?

b. What amount did Parade pay for the shares if the fair value of the non-controlling Interest at acquisition is $25,400 and goodwill of $32,000 is reported?

c. What balance will be assigned to the non-controlling Interest in the consolidated balance sheet if Parade pays $97,600 to acquire its ownership and goodwill of $27,000 is reported?

Reference no: EM133102113

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