Saito Corporation's stockholders' equity on December 31,2014 was as follows:
10% cumulative preferred stock,$100 par value,
On January 1,2015,Panata Corporation paid $300,000 for a 70% interest in Saito's common stock.On January 1,2015,the book values of Saito's assets and liabilities were equal to fair values.
Required:
1.Determine the book value of the common stockholders' equity for Saito Corporation on January 1,2015.
2.What is the amount of goodwill reported on the consolidated balance sheet for Panata Corporation (and Subsidiary)at January 2,2015?
3.What is the noncontrolling interest that appeared on a consolidated balance sheet for Panata Corporation (and Subsidiary)on January 2,2015?

Question

Saito Corporation's stockholders' equity on December 31,2014 was as follows:
10% cumulative preferred stock,$100 par value,
  On January 1,2015,Panata Corporation paid $300,000 for a 70% interest in Saito's common stock.On January 1,2015,the book values of Saito's assets and liabilities were equal to fair values.
Required:
1.Determine the book value of the common stockholders' equity for Saito Corporation on January 1,2015.
2.What is the amount of goodwill reported on the consolidated balance sheet for Panata Corporation (and Subsidiary)at January 2,2015?
3.What is the noncontrolling interest that appeared on a consolidated balance sheet for Panata Corporation (and Subsidiary)on January 2,2015?

Quizplus · Accepted Answer

The Answer of Saito Corporation's stockholders' equity on December 31,2014 was as follows:
10% cumulative preferred stock,$100 par value,
  On January 1,2015,Panata Corporation paid $300,000 for a 70% interest in Saito's common stock.On January 1,2015,the book values of Saito's assets and liabilities were equal to fair values.
Required:
1.Determine the book value of the common stockholders' equity for Saito Corporation on January 1,2015.
2.What is the amount of goodwill reported on the consolidated balance sheet for Panata Corporation (and Subsidiary)at January 2,2015?
3.What is the noncontrolling interest that appeared on a consolidated balance sheet for Panata Corporation (and Subsidiary)on January 2,2015?

Saito Corporation's Stockholders' Equity on December 31,2014 Was as Follows