Paxata Corporation holds a 35 percent interest in SCP Company's stock, reported at $8,000,000 using the equity method. The fair value of the investment is $12,000,000. It acquires the remaining 65 percent of SCP's stock for $25,000,000 in cash. At that date, STP's tangible assets have a fair value of $5,000,000, its identifiable intangible assets have a fair value of $16,000,000, and its liabilities have a fair value of $12,000,000. The acquisition is accounted for as a merger.
Required
Prepare Paxata's journal entry to record acquisition of the remaining interest in SCP.

Question

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The Answer of Paxata Corporation holds a 35 percent interest in SCP Company's stock, reported at $8,000,000 using the equity method. The fair value of the investment is $12,000,000. It acquires the remaining 65 percent of SCP's stock for $25,000,000 in cash. At that date, STP's tangible assets have a fair value of $5,000,000, its identifiable intangible assets have a fair value of $16,000,000, and its liabilities have a fair value of $12,000,000. The acquisition is accounted for as a merger.
Required
Prepare Paxata's journal entry to record acquisition of the remaining interest in SCP.

Paxata Corporation Holds a 35 Percent Interest in SCP Company's