1. On January 4, 2013, Mason Co. purchased 40,000 shares (40%) of the common stock of Hefly
Corp., paying $560,000. At that time, the book value and fair value of Hefly's net assets was
$1,400,000. The investment gave Mason the ability to exercise signifi
Problem 2-21 (LO 2-6)
The following book and fair values were available for Westmont Company as of March 1.
Additional paid-in capital
Retained earnings 1/1
Problem 1-15 (LO 1-3, 1-4)
On January 1, 2014, Ridge Road Company acquired 20 percent of the voting shares of Sauk Trail, Inc.
for $3,100,000 in cash. Both companies provide commercial Internet support services but serve markets
in different industries. R
Problem 3-16 (LO 3-3, 3-4)
Haynes, Inc., obtained 100 percent of Turner Companys common stock on January 1, 2014, by issuing
11,600 shares of $10 par value common stock. Hayness shares had a $15 per share fair value. On that
date, Turner reported a net bo