Question

Shaw owns 80% of Gorman. The following information is available: Consolidated Goodwill is $325,000. The fair...

Shaw owns 80% of Gorman. The following information is available:

Consolidated Goodwill is $325,000.

The fair value of the controlling interest is $700,000

The fair value of the noncontrolling interest is $225,000

The fair value of 100% of Gorman net assets acquired is $600,000

How much Goodwill is allocated to the noncontrolling interest

$480,000

$0

$105,000

$220,000

$325,000

Homework Answers

Answer #1

For any clarifications please comment, thank you.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A company pays $95,000 in cash and stock to acquire 80% of the voting stock of...
A company pays $95,000 in cash and stock to acquire 80% of the voting stock of another company. The fair value of the noncontrolling interest is $21,250. The book value of the acquired company is $66,250, and no revaluations of acquired identifiable net assets are necessary. What percentage of total goodwill is allocated to the controlling interest, following U.S. GAAP? Select one: A. 84% B. 86% C. 80% D. 82%
On January 1, 2021, Ackerman Company acquires 80% of Seidel Company for $1,866,080 in cash consideration....
On January 1, 2021, Ackerman Company acquires 80% of Seidel Company for $1,866,080 in cash consideration. The remaining 20 percent noncontrolling interest shares had an acquisition-date estimated fair value of $466,520. Seidel’s acquisition-date total book value was $1,853,000. The fair value of Seidel’s recorded assets and liabilities equaled their carrying amounts. However, Seidel had two unrecorded assets—a trademark with an indefinite life and estimated fair value of $267,050 and several customer relationships estimated to be worth $196,200 with four-year remaining...
On August 1, Year 5, A Company acquired 70 Percent of the common shares of C...
On August 1, Year 5, A Company acquired 70 Percent of the common shares of C Company for $700,000. On that date, the fair value of C’s identifiable net assets was $600,000 and the book value of its shareholders’ equity was $500,000 Assume that fair value enterprise method will be used for valuation of subsidiary. What amount of non-controlling interest should be reported on the balance sheet on the date of acquisition? $0 $150,000 $180,000 $300,000 Assume that Identifiable net...
On August 1, Year 5, A Company acquired 70 Percent of the common shares of C...
On August 1, Year 5, A Company acquired 70 Percent of the common shares of C Company for $700,000. On that date, the fair value of C’s identifiable net assets was $600,000 and the book value of its shareholders’ equity was $500,000 Assume that fair value enterprise method will be used for valuation of subsidiary. What amount of non-controlling interest should be reported on the balance sheet on the date of acquisition? $0 $150,000 $180,000 $300,000 Assume that Identifiable net...
On 31 December 20x8, M Ltd paid $300,000 to acquire 80% interest of N Ltd when...
On 31 December 20x8, M Ltd paid $300,000 to acquire 80% interest of N Ltd when the fair value of N Ltd’s net assets was represented by share capital of $100,000 and retained profit of $100,000, except for N Ltd’s freehold land which was carried at $100,000 but deemed to have a fair value of $150,000. On this date, N Ltd’s share capital comprised 100,000 ordinary shares with a fair value of $2.60 per share. Assuming the group policy of...
On January 1, 2021, Ackerman Company acquires 80% of Seidel Company for $1,797,600 in cash consideration....
On January 1, 2021, Ackerman Company acquires 80% of Seidel Company for $1,797,600 in cash consideration. The remaining 20 percent noncontrolling interest shares had an acquisition-date estimated fair value of $449,400. Seidel’s acquisition-date total book value was $1,785,000. The fair value of Seidel’s recorded assets and liabilities equaled their carrying amounts. However, Seidel had two unrecorded assets—a trademark with an indefinite life and estimated fair value of $257,250 and several customer relationships estimated to be worth $189,000 with four-year remaining...
On January 1, 2021, Ackerman Company acquires 80% of Seidel Company for $1,746,240 in cash consideration....
On January 1, 2021, Ackerman Company acquires 80% of Seidel Company for $1,746,240 in cash consideration. The remaining 20 percent noncontrolling interest shares had an acquisition-date estimated fair value of $436,560. Seidel’s acquisition-date total book value was $1,734,000. The fair value of Seidel’s recorded assets and liabilities equaled their carrying amounts. However, Seidel had two unrecorded assets—a trademark with an indefinite life and estimated fair value of $249,900 and several customer relationships estimated to be worth $183,600 with four-year remaining...
X Company acquired an 80% stake in y Company on January 1, 2018, when the book...
X Company acquired an 80% stake in y Company on January 1, 2018, when the book value of y Company’s stockholder equity accounts was $400,000. All of the $250,000 excess fair value over book value was allocated to goodwill. There were no intra-entity transactions during the year, and y Company reported net income on its books for $160,000 for 2018. y Company also declared dividends of $40,000 in 2018. What is the noncontrolling interest ending balance in the December 31,...
Question 9. Dolphin Co acquired an 80% share of Whale Co on 1 April 20X1 for...
Question 9. Dolphin Co acquired an 80% share of Whale Co on 1 April 20X1 for $5m. The fair value of the net assets of Whale Co on that date were $3m. The non controlling interest was valued at $0.8m, its fair value. Calculate goodwill based on the full goodwill method under IFRS 3. $2.6m $2.8m $2.0m $2.4m
On December 31, 200X P Corporation paid $300,000 cash for 80% of the common stock of...
On December 31, 200X P Corporation paid $300,000 cash for 80% of the common stock of S Company which becomes a subsidiary. Following information is shown prior to the acquisition being recorded: P Company Assets Liabilities and Equity Cash 580,000 Liabilities 90,000 Inventories 60,000 Plant 340,000 Common Stock, $5pv 100,000 Paid in Capital 200,000 Retained Earnings 590,000 Total 980,000 Total 980,000 S Company Assets Liabilities and Equity Inventories 20,000 Liabilities 30,000 Other assets 40,000 Long Term Debt 50,000 Plant 140,000...