SWFT Comprehensive Vol 2020
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ISBN: 9780357391723
Author: Maloney
Publisher: Cengage
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Kindly help me with general accounting question
Transcribed Image Text:On March 1, 2023, Company X acquired a 25%
stake in Company Y for $60,000. On March 1, 2024,
X acquired an additional 35% stake for $200,000.
The fair value of the initial 25% stake was
determined to be $75,000 at this time. Company Y
earned $40,000 between the acquisition dates.
Required:
a. Calculate investment cost for goodwill
computation
b. Calculate goodwill from transaction
c. Calculate gain recognized (without significant
influence)
d. Calculate gain recognized (with significant
influence)
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