Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. x corporation purchased a 45% interest in the comm

X Corporation purchased a 45% interest in the common stock of Y Company for $3,500,000...

90.2K

Verified Solution

Question

Accounting

X Corporation purchased a 45% interest in the common stock of Y Company for $3,500,000 on January 1, 2016, when the book value of Ivy's net stockholder's equity was $7,000,000. Y's book values equaled their fair values except for the following items:

Book Fair

Value Value Difference

Inventories $450,000 $600,000 $ 150,000

Land 100,000 450,000 350,000

Building-net 400,000 200,000 (200,000)

Equipment-net 350,000 400,000 50,000

Required:

Calculate the FMV of the assets at the time of purchase and goodwill, then prepare a schedule to allocate any excess purchase cost to identifiable assets and 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