Question - Perch Co. acquired 80% of the common stock of Float Corp. for $1,600,000. The fair value of Float's net assets was $1,850,000, and the book value was $1,500,000. The non-controlling interest shares of Float Corp. are not actively traded.
What is the total amount of goodwill recognized at the date of acquisition?
a) $150,000
b) $250,000
c) $0.00
d) $120,000
e) $170,000
What amount of goodwill should be attributed to the non-controlling interest at the date of acquisition?
a) $0.00
b) $20,000
c) $30,000
d) $100,000
e) $120,000
What is the dollar amount of non-controlling interest that should appear in a consolidated balance sheet prepared at the date of acquisition?
a) $350,000
b) $300,000
c) $400,000
d) $370,000
e) $0.00
What is the dollar amount of Float Corp's net assets that would be represented in a consolidated balance sheet prepared at the date of acquisition?
a) $1,600,000
b) $1,480,000
c) $1,200,000
d) $1,780,000
e) $1,850,000