On 4/1/06, P gave $520,000 in exchange for 100% of the outstanding common stock of S. On 4/1/06, S had 50,000 outstanding shares of common stock w/ a book value of $9 per share. The current value of S's property, plant, & equip on 4/1/06 was $110,000 more than its book value of $300,000.
a. Calculate the amount of goodwill or bargain purchase element existing in the transaction.
b. Determine amount at which the property, plant, & equipment will be reported in consolidation.
The solution answers the question(s) below.