Peters Inc. paid $400 in cash and $6,000 fair value of stock to acquire 65% of the voting stock of Stony Company. Stock registration fees were $100 and outside consulting fees were $50. Peters also agreed to an earnout, valued at $85, whereby additional cash will be paid to the former shareholders of Stony if certain performance goals are reached. The fair value of the noncontrolling interest was $3,415. Stony's book value was $2,000 at the date of acquisition, and revaluations consisted of previously unrecorded intangible assets valued at $6,900. What percentage of the total goodwill is allocated to Peters?

Peters Inc. paid $400 in cash and $6,000 fair value of stock to acquire 65% of the voting stock of Stony Company. Stock registration fees were $100 and outside consulting fees were $50. Peters also agreed to an earnout, valued at $85, whereby additional cash will be paid to the former shareholders of Stony if certain performance goals are reached. The fair value of the noncontrolling interest was $3,415. Stony's book value was $2,000 at the date of acquisition, and revaluations consisted of previously unrecorded intangible assets valued at $6,900. What percentage of the total goodwill is allocated to Peters?

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter8: Consolidated Tax Returns

Section: Chapter Questions

Problem 36P

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