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  3. pro corporation purchased 9,000 shares of schroede

Pro Corporation purchased 9,000 shares of Schroeder Corporation on January 1, 20X3, at book value....

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Accounting

Pro Corporation purchased 9,000 shares of Schroeder Corporation on January 1, 20X3, at book value. At that date, the fair value of the noncontrolling interest was equal to 52.6 percent of Schroeder's book value. On December 31, 20X8, Schroeder reported these balance sheet amounts:

Assets Liabilities and Equities
Cash $ 86,000 Accounts Payable $ 47,000
Accounts Receivable 121,000 Bonds Payable 150,000
Inventory 200,000 Common Stock 190,000
Buildings and Equipment 610,000 Additional Paid-In Capital 50,000
Less: Accumulated Depreciation (210,000) Retained Earnings 370,000
Total Assets $ 807,000 Total Liabilities and Equities $ 807,000

On January 1, 20X9, Schroeder issued an additional 5,000 shares of its $10 par value common stock to Nonaffiliated Company for $90 per share.

Required:

  1. Compute the change in book value of the shares held by Pro as a result of Schroeders issuance of additional shares.
  2. Prepare the entry to be recorded on Pros books to recognize the change in book value of the shares it holds, assuming the change in book value is to be treated as an adjustment to additional paid-in capital.
  3. Record the consolidation entry needed to prepare a cons
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