Protec Company acquired 75% of Sussex Company's voting stock for $30,000 in cash. The noncontrolling...
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Accounting
Protec Company acquired 75% of Sussex Company's voting stock for $30,000 in cash. The noncontrolling interest had an estimated fair value of $9,500. Some of Sussex's identifiable assets and liabilities at the date of acquisition had fair values that were different from reported values, as follows:
Book Value
Fair Value
Property, net
$ 2,000
$ 7,000
Identifiable intangibles
0
20,000
Sussex's total shareholders' equity at the date of acquisition was as follows:
Capital stock
$ 1,000
Retained earnings
3,000
Accumulated other comprehensive income
100
Total
$ 4,100
On a date-of-acquisition consolidation working paper, eliminating entry (R) credits Investment in Sussex in the amount of
Select one:
A. $18,750
B. $25,000
C. $26,925
D. $29,150
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