popper co acquired 80 percent of the common stock


Popper Co. acquired 80 percent of the common stock of Cocker Co. on 1st January, 2009, when Cocker had the subsequent stockholders' equity accounts.

To get this interest in Cocker, Popper paid a total of $682,000 with any excess acquisition date fair value over book value being allocated to goodwill, which has been calculated for impairment annually and has not been evaluated to be impaired as of January 1, 2012.
On 1st January, 2012, Cocker reported a net book value of $1,113,000 before the subsequent transactions were conducted. Popper uses equity method to account for its investment in Cocker, thereby reflecting change in book value of Cocker.

On 1st January, 2012, Cocker issued 10,000 additional shares of common stock for $21 per share. Popper did not get any of this newly issued stock. How would this transaction affect the extra paid-in capital of parent company? 

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Cost Accounting: popper co acquired 80 percent of the common stock
Reference No:- TGS0484306

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