Plum Corporation paid $700,000 for a 40% interest in Satin Company on January 1,2013 when Plum's stockholders' equity was as follows:
On this date,the book values of Plum's assets and liabilities equaled their fair values and there were no dividends in arrears.
Required: Calculate the amount recorded in the Investment in Satin Company and the amount of implied Goodwill in this transaction.

Question

Plum Corporation paid $700,000 for a 40% interest in Satin Company on January 1,2013 when Plum's stockholders' equity was as follows:
  On this date,the book values of Plum's assets and liabilities equaled their fair values and there were no dividends in arrears.
Required: Calculate the amount recorded in the Investment in Satin Company and the amount of implied Goodwill in this transaction.

Quizplus · Accepted Answer

The Answer of Plum Corporation paid $700,000 for a 40% interest in Satin Company on January 1,2013 when Plum's stockholders' equity was as follows:
  On this date,the book values of Plum's assets and liabilities equaled their fair values and there were no dividends in arrears.
Required: Calculate the amount recorded in the Investment in Satin Company and the amount of implied Goodwill in this transaction.

Plum Corporation Paid $700,000 for a 40% Interest in Satin