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Problem 3-2 On January 1, 2014, Perry Company purchased 7,976 shares of Soho Companys common stock for $118,000. Immediately after the stock acquisition, the statements of financial position of Perry and Soho appeared as follows: Assets Perry Soho Cash $38,510 $20,820 Accounts receivable 47,730 33,780 Inventory 38,130 22,710 Investment in Soho Company 118,000 Plant assets 169,190 108,880 Accumulated depreciationplant assets (48,430 ) (18,690 ) Total $363,130 $167,500 Liabilities and Owners Equity Current liabilities $18,790 $28,080 Mortgage notes payable 36,360 Common stock, $10 par value 123,690 99,700 Other contributed capital 136,670 17,270 Retained earnings 47,620 22,450 Total $363,130 $167,500 Collapse question part (a1) Correct answer. Your answer is correct. Calculate the percentage of Soho acquired by Perry Company. Percentage of Soho acquired Entry field with correct answer 80 % Click if you would like to Show Work for this question: Open Show Work SHOW SOLUTION LINK TO TEXT Attempts: 1 of 5 used Collapse question part (a2) Partially correct answer. Your answer is partially correct. Try again. Prepare a schedule to compute the difference between book value of equity and the value implied by the purchase price. Any difference between the book value of equity and the value implied by the purchase price relates to subsidiary plant assets. Parent Share Non- Controlling Share Entire Value Entry field with correct answer Purchase Price and Implied Value $Entry field with correct answer 118000 $Entry field with correct answer 29500 $Entry field with correct answer 147500 Entry field with correct answer Less : Entry field with correct answer Book Value of Equity Acquired : Entry field with correct answer Common Stock Entry field with incorrect answer 106800 Entry field with incorrect answer 18300 Entry field with correct answer 99700 Entry field with correct answer Other Contributed Capital Entry field with incorrect answer Entry field with incorrect answer Entry field with correct answer 17270 Entry field with correct answer Retained Earnings Entry field with incorrect answer Entry field with incorrect answer Entry field with correct answer 22450 Entry field with correct answer Total Book Value Entry field with incorrect answer Entry field with incorrect answer Entry field with correct answer 139420 Entry field with correct answer Difference Between Implied and Book Value Entry field with incorrect answer Entry field with incorrect answer Entry field with correct answer 8080 Entry field with correct answer Plant Assets Entry field with incorrect answer Entry field with incorrect answer Entry field with correct answer (8080) Entry field with correct answer Balance $Entry field with correct answer 0 $Entry field with correct answer 0 $Entry field with correct answer 0 Click if you would like to Show Work for this question:

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