Plum Corporation paid $700,000 for a 40% interest in Satin Company on January 1, 2011 when Plum's stockholders' equity was as follows:
10% cumulative preferred stock, $100 par $ 500,000
Common stock, $10 par value 300,000
Other paid-in capital 400,000
Retained earnings 800,000
Total stockholders' equity $2,000,000
Required: Calculate the amount recorded in the Investment in Satin Company and the amount of implied Goodwill in this transaction.© BrainMass Inc. brainmass.com October 10, 2019, 6:59 am ad1c9bdddf
Cost of Satin investment
(amount recorded in the
Investment account): $700,000 ...
The expert calculates the amount recorded in the Investment and the amount of implied Goodwill in this transaction.