Peak Entertainment acquires 60 percent of its subsidiary Saddlestone Inc. on January 1, 2016.
Peak Entertainment acquires 60 percent of its subsidiary Saddlestone Inc. on January 1, 2016. In preparing to consolidate Peak and Saddlestone at December 31, 2016, we assemble the following information: •Value of stock given up to acquire Saddlestone: $10,000,000. •Direct merger costs: $250,000. •Saddlestone’s stockholders’ equity at acquisition: $7,200,000. •Fair value of earnings contingency agreement to be paid in cash: $300,000. •Fair value of previously […]
