On January 1, 2013, Petrel, Inc. purchased 70% of the outstanding voting common stock of Ocean, Inc., for $2,600,000. The book value of Ocean's net equity on that date was $3,100,000. 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, 2013, Petrel, Inc. purchased 70% of the outstanding voting common stock of Ocean, Inc., for $2,600,000. The book value of Ocean's net equity on that date was $3,100,000. 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, 2013, Petrel, Inc. purchased 70% of the outstanding voting common stock of Ocean, Inc., for $2,600,000. The book value of Ocean's net equity on that date was $3,100,000. 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.