Padre, Inc., buys 80 percent of the outstanding common stock of Sierra Corporation on January 1, 2015, for $771,200 cash.
Padre, Inc., buys 80 percent of the outstanding common stock of Sierra Corporation on January 1, 2015, for $771,200 cash. At the acquisition date, Sierra’s total fair value, including the noncontrolling interest, was assessed at $964,000 although Sierra’s book value was only $614,000. Also, several individual items on Sierra’s financial records had fair values that differed from their book values as follows: Book ValueFair Value Land$65,900 $280,900 Buildings […]
