On January 1,2010,Palgan,Co.purchased 75% of the outstanding voting common stock of Somil,Inc. ,for $1,500,000.The book value of Somil's net equity on that date was $2,000,000.Book values were equal to fair values except as follows:
Required:
Prepare a schedule to allocate any excess purchase cost to specific assets and liabilities.

Question

On January 1,2010,Palgan,Co.purchased 75% of the outstanding voting common stock of Somil,Inc. ,for $1,500,000.The book value of Somil's net equity on that date was $2,000,000.Book values were equal to fair values except as follows:
  Required:
Prepare a schedule to allocate any excess purchase cost to specific assets and liabilities.

Quizplus · Accepted Answer

The Answer of On January 1,2010,Palgan,Co.purchased 75% of the outstanding voting common stock of Somil,Inc. ,for $1,500,000.The book value of Somil's net equity on that date was $2,000,000.Book values were equal to fair values except as follows:
  Required:
Prepare a schedule to allocate any excess purchase cost to specific assets and liabilities.