Problem: In 2014, Verizon Communications Inc, acquired Vodafone's 45 percent interest in Verizon Wireless. Information on the transaction is as follows (in millions)
1. Consideration paid totaled $130,390 and consisted of $58,890 in cash, Verizon stock with a par value of $127 and fair value of $61,300, preferred stock valued at $1,700 and an equity investment with a fair value of $3,500, In addition, Verizon issued notes payable of $5,000.
2. Verizon already reported its interest in Verizon Wireless as a business combination, and Vodafone's 45 percent interest was reported in its equity at a balance of $55,960.
Required:
Q1. Prepare the summary journal entry Verizon made to record acquisition of the 45 percent interest in Verizon Wireless.
Q2. By how much did the consideration paid for the non-controlling interest in Verizon Wireless exceed its book value?
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