The following balances were taken from the records of Blossom Company:
Common stock and $
Retained earnings $
Net income for
Dividends declared in
Retained earnings,
Total stockholders' equity on $
Splish company purchased of Blossom Company's common stock on January for $ The difference between implied value and book value is attributable to assets with a remaining useful life on January of ten years.
a Compute the difference between costimplied and book value applying:
Parent company theory.
Economic unit theory.
Difference
Parent company theory $
Economic unit theory $
