shares
Question
Albuquerque, Inc., acquired 24,000 shares of Marmon Company several years ago for $760,000. At the acquisition
date, Marmon reported a book value of $880,000, and Albuquerque assessed the fair value of the noncontrolling interest at $170,000. Any excess of acquisition-date fair value over book value was assigned to broadcast licenses with indefinite lives. Since the acquisition date and until this point, Marmon has issued no additional shares. No impairment has been recognized for the broadcast licenses.
At the present time, Marmon reports $930,000 as total stockholders’ equity, which is broken down as follows:
Common stock ($11 par value) $ 330,000
Additional paid-in capital 300,000
Retained earnings 300,000
Total $ 930,000
View the following as independent situations:
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