Accounting > EXAM > Advanced Accounting Test #2 ownership percent and consolidation, non-controlling interest fair value (All)
Advanced Accounting Test #2 ownership percent and consolidation, non-controlling interest fair value Update A+
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1. ownership percent and consolidation - complete ownership is not a prerequisite for consolidation. A single economic entity is formed whenever one company is able to control the decision-making pr... ocess of another. 2. non-controlling interest fair value - Ninety percent (90%) of the common stock of a subsidiary company was purchased for $3,600,000,000. Determine the acquisition date fair value of the entire subsidiary company (FVSC) based on the purchase price. $3,600,000 90% -------------- = ------- FVSC 100% 90% * FVSC = 100% * $3,600,000 0.9FVSC = $3,600,000 FVSC = $3,600,000 / 0.9 FVSC = $4,000,000 3. amount of goodwill recognized at the date of acquisition. - The total fair value is $3,000,000, and the fair value of net assets is $2,000,000. Determine the amount of goodwill. [Show More]
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