Samford Corporation's stockholders' equity on December 31,2014 was as follows:
8% cumulative preferred stock,$100 par value,
On January 1,2015,Panera Corporation purchased a 70% interest in Samford's common stock for $1,400,000.On this date the book values of Samford's assets and liabilities are equal to their fair values.
Required:
1.Determine the book value of the common stockholders' equity for Samford Corporation on January 1,2015.
2.What is the amount of goodwill reported on the consolidated balance sheet for Panera Corporation and Subsidiary at January 2,2015?
3.What is the noncontrolling interest that appeared on a consolidated balance sheet for Panera Corporation and Subsidiary on January 2,2015?

Question

Samford Corporation's stockholders' equity on December 31,2014 was as follows:
8% cumulative preferred stock,$100 par value,
  On January 1,2015,Panera Corporation purchased a 70% interest in Samford's common stock for $1,400,000.On this date the book values of Samford's assets and liabilities are equal to their fair values.
Required:
1.Determine the book value of the common stockholders' equity for Samford Corporation on January 1,2015.
2.What is the amount of goodwill reported on the consolidated balance sheet for Panera Corporation and Subsidiary at January 2,2015?
3.What is the noncontrolling interest that appeared on a consolidated balance sheet for Panera Corporation and Subsidiary on January 2,2015?

Quizplus · Accepted Answer

The Answer of Samford Corporation's stockholders' equity on December 31,2014 was as follows:
8% cumulative preferred stock,$100 par value,
  On January 1,2015,Panera Corporation purchased a 70% interest in Samford's common stock for $1,400,000.On this date the book values of Samford's assets and liabilities are equal to their fair values.
Required:
1.Determine the book value of the common stockholders' equity for Samford Corporation on January 1,2015.
2.What is the amount of goodwill reported on the consolidated balance sheet for Panera Corporation and Subsidiary at January 2,2015?
3.What is the noncontrolling interest that appeared on a consolidated balance sheet for Panera Corporation and Subsidiary on January 2,2015?

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