Summer Company holds assets with a fair value of $113,000 and a book value of $90,000 and liabilities with a book value and fair value of $26,000.

 Summer Company holds assets with a fair value of $113,000 and a book value of $90,000 and liabilities with a book value and fair value of $26,000.

Required:
Compute the following amounts if Parade Corporation acquires 80 percent ownership of Summer:

What amount did Parade pay for the shares if no goodwill and no gain on a bargain purchase are reported?


What amount did Parade pay for the shares if the fair value of the noncontrolling interest at acquisition is $25,600 and goodwill of $41,000 is reported?


What balance will be assigned to the noncontrolling interest in the consolidated balance sheet if Parade pays $88,800 to acquire its ownership and goodwill of $24,000 is reported?


Explanation
$69,600 = ($113,000 − $26,000) × 0.80

$102,400 = ($113,000 − $26,000) + $41,000 − $25,600

$22,200 = ($113,000 − $26,000) + $24,000 − $88,800