On January 1, 2012, Pharma Company purchased 16,000 of the 20,000 outstanding common shares of Sludge Company for $760,000. On January 1, 2016, Pharma Company sold 2,000 of its shares of Sludge Company on the open market for $90 per share. Sludge Company's stockholders' equity on January 1, 2012, and January 1, 2016, was as follows: The difference between implied and book value is assigned to Sludge Company's land. Assuming no other equity transactions, the amount of the difference between implied and book value that would be added to land on a work paper for the preparation of consolidated statements on December 31, 2016 would be:

Question

On January 1, 2012, Pharma Company purchased 16,000 of the 20,000 outstanding common shares of Sludge Company for $760,000. On January 1, 2016, Pharma Company sold 2,000 of its shares of Sludge Company on the open market for $90 per share. Sludge Company's stockholders' equity on January 1, 2012, and January 1, 2016, was as follows:  The difference between implied and book value is assigned to Sludge Company's land. Assuming no other equity transactions, the amount of the difference between implied and book value that would be added to land on a work paper for the preparation of consolidated statements on December 31, 2016 would be:

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The Answer of On January 1, 2012, Pharma Company purchased 16,000 of the 20,000 outstanding common shares of Sludge Company for $760,000. On January 1, 2016, Pharma Company sold 2,000 of its shares of Sludge Company on the open market for $90 per share. Sludge Company's stockholders' equity on January 1, 2012, and January 1, 2016, was as follows:  The difference between implied and book value is assigned to Sludge Company's land. Assuming no other equity transactions, the amount of the difference between implied and book value that would be added to land on a work paper for the preparation of consolidated statements on December 31, 2016 would be:

On January 1, 2012, Pharma Company Purchased 16,000 of the 20,000