Protec Company acquired 75% of Sussex Company's voting stock for $30,000 in cash. The noncontrolling...
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Protec Company acquired 75% of Sussex Company's voting stock for $30,000 in cash. The noncontrolling interest had an estimated fair value of $9,500. Some of Sussex's identifiable assets and liabilities at the date of acquisition had fair values that were different from reported values, as follows:
|
| Book Value | Fair Value |
| Property, net | $ 2,000 | $ 7,000 |
| Identifiable intangibles | 0 | 20,000 |
Sussex's total shareholders' equity at the date of acquisition was as follows:
| Capital stock | $ 1,000 |
| Retained earnings | 3,000 |
| Accumulated other comprehensive income | 100 |
| Total | $ 4,100 |
On a date-of-acquisition consolidation working paper, eliminating entry (R) credits Investment in Sussex in the amount of
Select one:
A. $18,750
B. $25,000
C. $26,925
D. $29,150
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