Pool Industries paid $540,000 to purchase 75% of the outstanding stock of Swimmin Corporation, on December 31, 2011.Any excess fair value over the identified assets and liabilities is attributed to goodwill.The following year-end information was available just before the purchase:
Using the data provided above, assume that Pool decided rather than paying $540,000 cash, Pool issued 10,000 shares of their own stock to the owners of Swimmin.At the time of issue, the $10 par value stock had a market value of $60 per share.
Required: Prepare Pool's consolidated balance sheet on December 31, 2011.

Question

Pool Industries paid $540,000 to purchase 75% of the outstanding stock of Swimmin Corporation, on December 31, 2011.Any excess fair value over the identified assets and liabilities is attributed to goodwill.The following year-end information was available just before the purchase:
  Using the data provided above, assume that Pool decided rather than paying $540,000 cash, Pool issued 10,000 shares of their own stock to the owners of Swimmin.At the time of issue, the $10 par value stock had a market value of $60 per share.
Required: Prepare Pool's consolidated balance sheet on December 31, 2011.

Quizplus · Accepted Answer

The Answer of Pool Industries paid $540,000 to purchase 75% of the outstanding stock of Swimmin Corporation, on December 31, 2011.Any excess fair value over the identified assets and liabilities is attributed to goodwill.The following year-end information was available just before the purchase:
  Using the data provided above, assume that Pool decided rather than paying $540,000 cash, Pool issued 10,000 shares of their own stock to the owners of Swimmin.At the time of issue, the $10 par value stock had a market value of $60 per share.
Required: Prepare Pool's consolidated balance sheet on December 31, 2011.

Pool Industries Paid $540,000 to Purchase 75% of the Outstanding