The book value of a share of Camden common stock on December 31 is $12. The balance sheet value and the market value of the company's assets and liabilities as of that date follow:
On December 31, Conglomerate, Inc. purchased 100 percent of the outstanding stock of Camden for $22 per share.
a. How many shares of common stock did Camden have outstanding as of December 31?
b. Compute the per-share net market value of Camden's common stock.
c. Why would Conglomerate pay more than the per-share market value for a share of Camden common stock?
d. Prepare the entry that reflects the acquisition.