Complete question:
A company pays $70 million in cash to acquire 70% of the voting stock of another company. The fair value of the non controlling interest at the date of acquisition is $25 million, and the book value of the acquired company is $20 million. There are no revaluations of the acquired company’s identifiable net assets. Goodwill allocated to the non-controlling interest is:
REQUIRED: Assuming U.S. GAAP is used.
a. Calculate the total goodwill
b. How much goodwill is allocated to the controlling interest? What percent of goodwill is allocated to the controlling interest?
c. How much goodwill is allocated to the non-controlling interest? What percent of goodwill is allocated to the non-controlling interest?
Solution:
a. Total goodwill = $70 million + $25 million - $20 million = $75 million
b. Goodwill to the controlling interest = $70 million - (70% x $20 million)
= $56 million Goodwill percent to the controlling interest = 75%
c. Goodwill to the non-controlling interest = $75 million - $56 million
= $19 million Goodwill percent to the non-controlling interest = 25%
Answer:
b) Debit Cash $7,000; credit Common Stock $6,000; credit Paid-in Capital in Excess of Par Value, Common Stock $1,000.
Explanation:
When shares are issued and paid for, the entries required are debit to cash account and a credit to common stock. However, when the amount received is higher than the par value of the stock issued, the excess received is recorded as a share premium or Paid-in Capital in Excess of Par Value.
As such, where the par value is $100 and 60 shares were issued, value of common stock issued
= $100 * 60
= $6,000
Paid-in Capital in Excess of Par Value = $7,000 - $6,000
= $1,000
<u>A brand can be one of a company's most </u><u>valuable </u><u>assets</u>, this is the correct statements regarding the concept of branding.
What is branding?
A brand is any characteristic that sets one seller's good or service apart from that of other sellers. It can be a name, a term, a design, a symbol, or anything else. Businesses, marketers, and advertisers use brands to build and preserve brand equity for the product or service they are promoting, which benefits the brand's consumers, owners, and shareholders. Sometimes generic or store brands can be distinguished from brand names. It is believed that the ancient Egyptians, who are known to be have engaged in livestock branding as slightly earlier as 2,700 BCE, are the originators of the practise of branding, which is defined in its original literal sense as marking by burning. By using a hot branding iron to burn a distinctive symbol into the animal's skin, branding was used to distinguish one person's cattle from another.
To learn more about branding
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<span>"Public Health Service Policy on Humane Care and Use of Laboratory Animals" by the US Deparment of Health and Human Services; and "Guide for the Care and Use of Laboratory Animals" by the National Research Council of the National Academies.</span>
The answer is chkdsk /r. This command will track down bad sectors on the drive and recuperate readable information. If it finds bad sectors it quarantines them as unreadable so they aren't used again. When this is used it automatically uses /f as well.
