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Paint Corporation acquired 75 percent of the stock of Stain Company by issuing shares of its...

Paint Corporation acquired 75 percent of the stock of Stain Company by issuing shares of its common stock with a fair value of $178,500. At that time, the fair value of the noncontrolling interest was estimated to be $59,500, and the fair values of Stain’s identifiable assets and liabilities were $313,000 and $95,000, respectively. Stain’s assets and liabilities had book values of $216,000 and $95,000, respectively.
  
Required:
Compute the following amounts to be reported immediately after the combination.

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Answer #1
a. Investment in Stain reported by paint $ 178,500
b. Particulars Amount (in $)
Fair value of common stock $ 178,500
Add: Fair value of Non controlling interest $ 59,500
Less: Fair value of Assets (-) Fair value of liabilities
                   ( $ 313,000 (-) $ 95,000 )		 ($ 218,000)
Goodwill $ 20,000
c. Non-controlling Interest reported in the Consolidated balance sheet
( $ 178,500 + $ 59,500 ) x (100% (-) 25% )		 $ 59,500
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