Essay
On December 31, 2006, the balance sheet of Sint Company included stockholders' equity of $2,000,000. On that date, Plane Corporation acquired for cash a controlling interest in the common stock of Sint. The December 31, 2006, current fair values of Sint's identifiable net assets totaled $2,400,000, and goodwill computed as the difference between Plane's cost and its share of the current fair value of Sint's identifiable net assets was $180,000.
Prepare a working paper to compute the total cost of Plane's investment in Sint if Plane owns:
a. 100% of Sint's common stock
b. 90% of Sint's common stock
c. 80% of Sint's common stock
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a. ($2,400,000 + $180,000) = $...View Answer
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Correct Answer:
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