Pryce Corporation owns 8,000 of the 10,000 shares of outstanding common stock of Somber Company. On July 31, 2006, the end of a fiscal year, the stockholders' equity of Somber was $800,000, and the balance of Pryce's Investment in Somber Company Common Stock ledger account was $678,000, of which $38,000 was attributable to unimpaired goodwill. The current fair values of Somber's identifiable net assets had equaled their carrying amounts on the date of the Pryce-Somber business combination.
On August 1, 2006, Somber issued 2,000 shares of common stock to the public at $110 a share, net of out-of-pocket costs of issuing the stock. Both Pryce and Somber's minority stockholders waived their preemptive right.
Prepare a working paper to compute the nonoperating gain or loss to Pryce Corporation resulting from Somber Company's issuance of common stock to the public. Use the following format:

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The Answer of Pryce Corporation owns 8,000 of the 10,000 shares of outstanding common stock of Somber Company. On July 31, 2006, the end of a fiscal year, the stockholders' equity of Somber was $800,000, and the balance of Pryce's Investment in Somber Company Common Stock ledger account was $678,000, of which $38,000 was attributable to unimpaired goodwill. The current fair values of Somber's identifiable net assets had equaled their carrying amounts on the date of the Pryce-Somber business combination.
On August 1, 2006, Somber issued 2,000 shares of common stock to the public at $110 a share, net of out-of-pocket costs of issuing the stock. Both Pryce and Somber's minority stockholders waived their preemptive right.
Prepare a working paper to compute the nonoperating gain or loss to Pryce Corporation resulting from Somber Company's issuance of common stock to the public. Use the following format:

Pryce Corporation Owns 8,000 of the 10,000 Shares of Outstanding