Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 3. thomas inc. had the following stockholders' equ

3. Thomas Inc. had the following stockholders' equity accounts as of January 1, 2013: $...

50.1K

Verified Solution

Question

Accounting

image
image
3. Thomas Inc. had the following stockholders' equity accounts as of January 1, 2013: $ Preferred stock-$90 par value, nonvoting and nonparticipating: 9% cumulative dividend Common stock - $25 par value Retained earnings 2,700,000 5,600,000 14,000,000 Kuried Co. acquired all of the voting common stock of Thomas on January 1, 2013, for $20,656,000. The preferred stock remained in the hands of outside parties and had a fair value of $3,060,000. A database valued at $656,000 was recognized and amortized over five years. During 2013, Thomas reported earning $630,000 in net income and paid $504,000 in total cash dividends. Kuried used the equity method to account for this investment. What is the amount of goodwill resulting from this acquisition? Consideration transferred for 100% interest in common stock Non-controlling interest in preferred stock (100%): Total fair value of Thomas 1/1/13 Book value Excess acquisition-date fair value over book value Assigned to database Goodwill

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Advance Math
1.2K views

4. Sampling Without Replacement We have n−2 beer bottles b1,…,bn−2 and 2 cider bottles c1 and c2 ....

Finance
1.2K views

Tom owns 22 hotdog stands. Tom earned $10,000 last year from the hotdog stands business. For $4000, Tom...

Biology
1.2K views

What does the following dialogue reveal? During their conversation, she had said: "And CaptainCarruthers tells...

Biology
1.2K views

A sole proprietorship is a one person business without any O assets while a partnership...

Physics
1.2K views

Plane x 2y 10 carries uniform surface charge 3 density nC m Resulting electric field...

Basic Math
1.2K views

The math department faculty at a large university wanted to know what portion of the...

Basic Math
1.2K views

It took Sharon 4 hours to drive to her grandmother's house. Her grandmother lives 140...

Calculus
1.2K views

4 Consider g x x x 2 if x 2n 5 A Find the values...

Accounting
1.2K views

Need help ASAP with formula! E7-11 Making Decisions Involving Constrained Resource [LO 7-2, 7-7]...

Accounting
1.2K views

P9-63A Comprehensive budgeting problem - please show completed problem worked and formulas used

Accounting
1.2K views

aberge company's manufacturing overhead is 35% of its total conversion costs. If direct labor is...

Accounting
1.2K views

1. Retrospective restatement of financial statements can result from: a. Changes in tax law. b....