Albuquerque, Inc., acquired 27,000 shares of Marmon Companyseveral years ago for $900,000. At the...

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Albuquerque, Inc., acquired 27,000 shares of Marmon Companyseveral years ago for $900,000. At the acquisition date, Marmonreported a book value of $980,000, and Albuquerque assessed thefair value of the noncontrolling interest at $100,000. Any excessof acquisition-date fair value over book value was assigned tobroadcast licenses with indefinite lives. Since the acquisitiondate and until this point, Marmon has issued no additional shares.No impairment has been recognized for the broadcast licenses.
At the present time, Marmon reports $1,070,000 as totalstockholders’ equity, which is broken down as follows:
Common stock ($10 par value) $ 300,000
Additional paid-in capital 370,000
Retained earnings 400,000
Total $ 1,070,000
View the following as independent situations:
a. & b. Marmon sells 15,000 and 6,000shares of previously unissued common stock to the public for $40and $26 per share. Albuquerque purchased none of this stock. Whatjournal entry should Albuquerque make to recognize the impact ofthis stock transaction? (If no entry is required for atransaction/event, select "No journal entry required" in the firstaccount field. Do not round your intermediatecalculations.)

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a Albuquerques share in Mormon before issuance of new shares 90 27000 shares out of 30000 shares Adjusted acquisitiondate fair value 1090000 900000 100000 1070000 980000 After the stock issue the adjusted acquisitiondate fair value of the See Answer

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In: AccountingAlbuquerque, Inc., acquired 27,000 shares of Marmon Companyseveral years ago for $900,000. At the acquisition...Albuquerque, Inc., acquired 27,000 shares of Marmon Companyseveral years ago for $900,000. At the acquisition date, Marmonreported a book value of $980,000, and Albuquerque assessed thefair value of the noncontrolling interest at $100,000. Any excessof acquisition-date fair value over book value was assigned tobroadcast licenses with indefinite lives. Since the acquisitiondate and until this point, Marmon has issued no additional shares.No impairment has been recognized for the broadcast licenses.At the present time, Marmon reports $1,070,000 as totalstockholders’ equity, which is broken down as follows:Common stock ($10 par value)$300,000Additional paid-in capital370,000Retained earnings400,000Total$1,070,000View the following as independent situations:a. & b. Marmon sells 15,000 and 6,000shares of previously unissued common stock to the public for $40and $26 per share. Albuquerque purchased none of this stock. Whatjournal entry should Albuquerque make to recognize the impact ofthis stock transaction? (If no entry is required for atransaction/event, select "No journal entry required" in the firstaccount field. Do not round your intermediatecalculations.)


Common stock ($10 par value)	$	300,000
Additional paid-in capital		370,000
Retained earnings		400,000
Total	$	1,070,000