AA8 - single stockholders for $6 per share. Although Amies...

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Question: a. $60,000 b. $90,000 c. $100,000 d. $-0- Solution: Amie 100,000 Shares of $2 par value Cost Fair value Jan 1 2009 Prairie - Amie 30,000 Shares acquired for $120,000 120000 350,000 July 1, 2012 Prairie - Amie 60,000 Shares acquired for $6 per share 360000 500,000 Total shares 90,000 Ownership stake 90% Investment 360,000 FV of prev 30% 150,000 Total Consideration 510,000 Less: 90% of FV 450,000 Goodwill 60,000 Answer is a. $60000 AA8: 8. Amie, Inc., has 100,000 shares of $2 par value stock outstanding. Prairie Corporation acquired 30,000 of Amie’s shares on January 1, 2009, for $120,000 when Amie’s net asset had a total fair value of $350,000. On July 1, 2012, Prairie agreed to buy an additional 60,000 shares of Amie from a
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Unformatted text preview: single stockholders for $6 per share. Although Amies shares were selling in the $5 range around July 1, 2012, Prairie forecasted that obtaining control for Amie would produce significant revenue synergies to justify the premium price paid. If Amies net identifiable assets had a fair value of $500,000 at July 1, 2012, how much goodwill should Prairie report in its post combination consolidated balance sheet?...
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This note was uploaded on 12/05/2011 for the course ACC 134 taught by Professor Erik during the Fall '11 term at Colorado.

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