On July 1, 2015, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of $788,900 in cash and equity securities. The remaining 30 percent of Atlanta’s shares traded closely near an average price that totaled $338,100 both before and after Truman’s acquisition.
In reviewing its acquisition, Truman assigned a $129,500 fair value to a patent recently developed by Atlanta, even though it was not recorded within the financial records of the subsidiary. This patent is anticipated to have a remaining life of five years.
The following financial information is available for these two companies for 2015. In addition, the subsidiary’s income was earned uniformly throughout the year. Subsidiary dividend payments were made quarterly.
Truman Atlanta
Revenues $ 785,065 $ 533,000
Income of subsidiary 60,935
Operating expenses (486,000 ) (333,000 )
0 коммент.:
Отправить комментарий