On September 1,2013,Nelson Corporation acquired a 90% interest in Corbin Corporation for $900,000.Corbin's stockholders' equity at January 1,2013 consisted of $200,000 of Common Stock and $600,000 of Retained Earnings.The book values of its assets and liabilities were equal to their respective fair values on this date.All excess purchase cost was attributed to goodwill.
During 2013,Corbin uniformly earned $98,000 and paid dividends of $19,000 on each of four dates: February 1,June 1,August 1,and December 1.
Required: Compute the following:
1.Implied goodwill associated with Corbin Corporation based on Nelson's purchase price on September 1,2013.
2.Nelson's income from Corbin for 2013.
3.Preacquisition income for Nelson Corporation and Subsidiary for 2013.
4.Noncontrolling interest share for 2013.
5.What is the balance in Nelson's Investment in Corbin account at December 31,2013?

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The Answer of On September 1,2013,Nelson Corporation acquired a 90% interest in Corbin Corporation for $900,000.Corbin's stockholders' equity at January 1,2013 consisted of $200,000 of Common Stock and $600,000 of Retained Earnings.The book values of its assets and liabilities were equal to their respective fair values on this date.All excess purchase cost was attributed to goodwill.
During 2013,Corbin uniformly earned $98,000 and paid dividends of $19,000 on each of four dates: February 1,June 1,August 1,and December 1.
Required: Compute the following:
1.Implied goodwill associated with Corbin Corporation based on Nelson's purchase price on September 1,2013.
2.Nelson's income from Corbin for 2013.
3.Preacquisition income for Nelson Corporation and Subsidiary for 2013.
4.Noncontrolling interest share for 2013.
5.What is the balance in Nelson's Investment in Corbin account at December 31,2013?

On September 1,2013,Nelson Corporation Acquired a 90% Interest in Corbin