Question

Hepner Corporation has the following stockholders’ equity accounts: Preferred stock (8% cumulative dividend) $ 660,000 Common...

Hepner Corporation has the following stockholders’ equity accounts:

Preferred stock (8% cumulative dividend) $ 660,000
Common stock 910,000
Additional paid-in capital 460,000
Retained earnings 1,110,000

The preferred stock is participating. Wasatch Corporation buys 70 percent of this common stock for $1,820,000 and 60 percent of the preferred stock for $810,000. The acquisition-date fair value of the noncontrolling interest in the common shares was $780,000 and was $540,000 for the preferred shares. All of the subsidiary’s assets and liabilities are viewed as having fair values equal to their book values.

What amount is attributed to goodwill on the date of acquisition?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Hepner Corporation has the following stockholders’ equity accounts: Preferred stock (5% cumulative dividend) $ 680,000 Common...
Hepner Corporation has the following stockholders’ equity accounts: Preferred stock (5% cumulative dividend) $ 680,000 Common stock 930,000 Additional paid-in capital 480,000 Retained earnings 1,130,000 The preferred stock is participating. Wasatch Corporation buys 70 percent of this common stock for $1,750,000 and 60 percent of the preferred stock for $810,000. The acquisition-date fair value of the noncontrolling interest in the common shares was $750,000 and was $540,000 for the preferred shares. All of the subsidiary’s assets and liabilities are viewed...
Hepner Corporation has the following stockholders’ equity accounts: Preferred stock (6% cumulative dividend) $ 750,000 Common...
Hepner Corporation has the following stockholders’ equity accounts: Preferred stock (6% cumulative dividend) $ 750,000 Common stock 1,000,000 Additional paid-in capital 550,000 Retained earnings 1,200,000 The preferred stock is participating. Wasatch Corporation buys 80 percent of this common stock for $1,880,000 and 70 percent of the preferred stock for $910,000. The acquisition-date fair value of the noncontrolling interest in the common shares was $470,000 and was $390,000 for the preferred shares. All of the subsidiary’s assets and liabilities are viewed...
Hepner Corporation has the following stockholders’ equity accounts: Preferred stock (7% cumulative dividend) $ 580,000 Common...
Hepner Corporation has the following stockholders’ equity accounts: Preferred stock (7% cumulative dividend) $ 580,000 Common stock 830,000 Additional paid-in capital 380,000 Retained earnings 1,030,000 The preferred stock is participating. Wasatch Corporation buys 70 percent of this common stock for $1,680,000 and 60 percent of the preferred stock for $660,000. The acquisition-date fair value of the noncontrolling interest in the common shares was $720,000 and was $440,000 for the preferred shares. All of the subsidiary’s assets and liabilities are viewed...
hepner corporation has the following stockholders equity accounts. Preferred stock 7% cumulative dividends 530,000. common stock...
hepner corporation has the following stockholders equity accounts. Preferred stock 7% cumulative dividends 530,000. common stock 780,000. additional paid in capital 330,000. retained earnings 980,000. The preferred stock is participating. Wasatch corporation buys 75 percent of this common stock for $1,650,000 and 65 percent of the preferred stock for $650,000. The acquisition date fair value of the non controlling interest in the common shares was $550,000 and was $350,000 for the preferred shares. All of the subsidiary's assets and liabilities...
Dividends on preferred stock. The stockholders' equity section of Lemay Corporation shows the following on December...
Dividends on preferred stock. The stockholders' equity section of Lemay Corporation shows the following on December 31, 2015: Preferred stock—5%, $100 par, 5,000 shares outstanding $ 500,000 Common stock—$10 par, 60,000 shares outstanding 600,000 Paid-in capital in excess of par 200,000 Retained earnings 113,000 Total stockholders' equity $1,413,000 Instructions Assuming that all of the company's retained earnings are to be paid out in dividends on 12/31/15 and that preferred dividends were last paid on 12/31/13. 1. Show how much the...
Smith, Inc., has the following stockholders’ equity accounts as of January 1, 2018: Preferred stock—$100 par,...
Smith, Inc., has the following stockholders’ equity accounts as of January 1, 2018: Preferred stock—$100 par, nonvoting and nonparticipating, 6% cumulative dividend $ 2,230,000 Common stock—$20 par value 4,230,000 Retained earnings 10,230,000 Haried Company purchases all of Smith's common stock on January 1, 2018, for $14,520,000. The preferred stock remains in the hands of outside parties. Any excess acquisition-date fair value will be assigned to franchise contracts with a 40-year remaining life. During 2018, Smith reports earning $680,000 in net...
The stockholders' equity section of Giants Corporation shows the following on December 31, 2019: Preferred stock—8%,...
The stockholders' equity section of Giants Corporation shows the following on December 31, 2019: Preferred stock—8%, $50 par, 8,000 shares outstanding $ 400,000 Common stock—$10 par, 60,000 shares outstanding 600,000 Paid-in capital in excess of par 600,000 Retained earnings 500,000 Total stockholders' equity $2,100,000 Instructions Assume that Giants has decided to declare and pay $400,000 in cash dividends on 12/31/19 and that preferred dividends were last paid on 12/31/15, show how much the preferred and common stockholders should receive if...
Raphael Corporation’s balance sheet shows the following stockholders’ equity section. Preferred stock—5% cumulative, $___ par value,...
Raphael Corporation’s balance sheet shows the following stockholders’ equity section. Preferred stock—5% cumulative, $___ par value, 1,000 shares authorized, issued, and outstanding $ 50,000 Common stock—$___ par value, 4,000 shares authorized, issued, and outstanding 100,000 Retained earnings 370,000 Total stockholders' equity $ 520,000 1. What are the par values of the corporation’s preferred stock and its common stock? Par Value Corporation's preferred stock Corporation's common stock 2. If no dividends are in arrears at the current date, what is the...
Pain Corporation holds 90 percent of Soothing Company's common shares but none of its preferred shares....
Pain Corporation holds 90 percent of Soothing Company's common shares but none of its preferred shares. On the date of acquisition, the fair value of the noncontrolling interest was equal to 10 percent of the book value of Soothing Company. Summary balance sheets for the companies on December 31, 20X8, are as follows: Pain Corporation Soothing Company Cash and Receivables $ 80,000 $ 70,000 Inventory 40,000 30,000 Buildings and Equipment (net) 160,000 150,000 Investment in Soothing Company 135,000 0 Total...
Through the payment of $11,525,000 in cash, Drexel Company acquires voting control over Young Company. This...
Through the payment of $11,525,000 in cash, Drexel Company acquires voting control over Young Company. This price is paid for 60 percent of the subsidiary's 100,000 outstanding common shares ($40 par value) as well as all 17,500 shares of 6 percent, cumulative, $120 par value preferred stock. Of the total payment, $3.5 million is attributed to the fully participating preferred stock with the remainder paid for the common. This acquisition is carried out on January 1, 2018, when Young reports...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT