Determination and distribution of excess income schedule Through this price paid for subsidiary equity is compared with predetermine imbalance which is occurred in the consolidated worksheet because of elimination of in the investment account against the underlying subsidiary equity. To calculate: According to the question, need to prepare determination and distribution of excess schedule along with it recording of this investment is need to made.

Question

On December 31, 2017, X Company paid $3,600,000 for 100% of the stock of Y Company when Y's underlying net assets had a fair value of $2,800,000. Almost immediately after the acquisition, X paid $240,000 for an advertising campaign that was designed to maintain goodwill. How much will be reported as goodwill on X Company's December 31, 2018 balance sheet?

Answer 1

Question

Chapter 3, Problem 3.4.1P

To determine

Determination and distribution of excess income schedule

Through this price paid for subsidiary equity is compared with predetermine imbalance which is occurred in the consolidated worksheet because of elimination of in the investment account against the underlying subsidiary equity.

To calculate:

According to the question, need to prepare determination and distribution of excess schedule along with it recording of this investment is need to made.

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On December 31, 2017, X Company paid $3,600,000 for 100% of the stock of Y Company when Y's underlying net assets had a fair value of $2,800,000. Almost immediately after the acquisition, X paid $240,000 for an advertising campaign that was designed to maintain goodwill. How much will be reported as goodwill on X Company's December 31, 2018 balance sheet?

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