On May 1, 2021, Caprisun Inc acquired most of the outstanding shares of Cancer Co for cash. The incomplete working paper elimination entries on that date for the consolidated statement of financial position of Taurus Inc and its subsidiary are shown below: Stockholders' equity-Cancer       2,437,500            Investment in Cancer                           1,584,375            Non-controlling interest                        853,125   Inventories                 62,500 Equipment                312,500 Patent                         61,250 Goodwill                          ?        Investment in Cancer                             468,750        Non-controlling interest                            ?   The purchase price of Caprisun Inc included a control premium of 68,750.   What is the amount of goodwill to be reported in the consolidated statement of financial position on May 1, 2021 if the non-controlling interest is assumed to be measured at fair value.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On May 1, 2021, Caprisun Inc acquired most of the outstanding shares of Cancer Co for cash. The incomplete working paper elimination entries on that date for the consolidated statement of financial position of Taurus Inc and its subsidiary are shown below:

Stockholders' equity-Cancer       2,437,500

           Investment in Cancer                           1,584,375

           Non-controlling interest                        853,125

 

Inventories                 62,500

Equipment                312,500

Patent                         61,250

Goodwill                          ?

       Investment in Cancer                             468,750

       Non-controlling interest                            ?

 

The purchase price of Caprisun Inc included a control premium of 68,750.

 

What is the amount of goodwill to be reported in the consolidated statement of financial position on May 1, 2021 if the non-controlling interest is assumed to be measured at fair value.

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