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Pennington Corporation Purchased 80% of the Voting Common Stock of Stafford

Question 1

Essay

Pennington Corporation purchased 80% of the voting common stock of Stafford Corporation for $3,200,000 cash on January 1, 2013.On this date the book values and fair values of Stafford Corporation's assets and liabilities were as follows: Pennington Corporation purchased 80% of the voting common stock of Stafford Corporation for $3,200,000 cash on January 1, 2013.On this date the book values and fair values of Stafford Corporation's assets and liabilities were as follows: Required: Prepare a schedule showing how the difference between Stafford Corporation's implied value and the book value of the net assets acquired should be allocated.
Required:
Prepare a schedule showing how the difference between Stafford Corporation's implied value and the book value of the net assets acquired should be allocated.

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