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Adam Company acquired 90% of the outstanding common stock of Saul Company on June 30, 2011 for $425,700. On that date, the fair value of the...

Adam Company acquired 90% of the outstanding common stock of
Saul Company on June 30, 2011 for $425,700. On that date, the fair value of
the non-controlling interest was $47,300.
On the acquisition date, Saul Company
had retained earnings in the amount of $60,000, and the fair value of its
recorded assets and liabilities was equal to their book value. The excess of
cost over the fair value of the recorded net assets was attributed to
an unrecorded manufacturing formula held by Saul Company, which
had an expected remaining useful life of five years from June 30, 2011.

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