P-1-37 Finder’s fee paid to firm that located Light Steel $10,000+) Legal fees paid to assist in transfer of net assets 9,000 Merger total $19,000Record finder's fee and transfer costs:Merger expense $19,000Cash 19,000Audit fee for stock issue by PURE Products 3,000Stock registration fee for new shares of PURE Products 5,000+) Cost of SEC registration of PURE Products shares 1,000 Deferred stock issue $9,000Record audit fees and stock registration fees:Deferred Stock Issue Costs $9,000Cash $9,000Goodwill calculation: Fair value of consideration given (12,000x50) 600,000- ) Fair value of net identifiable assets acquired (695,000-10,000-180,000) 505,000 Goodwill $95,000Additional paid in capital:(50-10) x 12,000 – 9,000 = 471,000Cash 60,000Accounts Receivable 100,000Inventory 115,000Land 70,000Building & Equipment 350,000Bonds discount 20,000Goodwill 95,000Account Payable 10,000Bonds Payable 200,000Common Stock 120,000Additional Paid – in capital 471,000Deferred Stock Issue costs 9,000P 3-31Balance in investment account, December 31,207 $259,800Cumulative earnings since acquisition (35,000+45,000+30,000) 110,000Cumulative dividends since acquisition (12,000+20,000+14,000) (46,000) Net assets on December 31,20x7 64,000x 75% (48,000)Differential December 31,20x7 $ 211,800b.AAAA $282,400 ($211,800 / 0.75) is the fair value of net assets on January 1, 20X5Ac.AAAA $70,600 ($282,400 x 0.25) is the value assigned to the NCI shareholders on January 1, 20X5.Ad.AAAA $86,600 = ($259,800 / 0.75) x 0.25 will be assigned to non-controlling interest in the consolidated balance sheet prepared at December 31,
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