Advanced Financial Accounting WGU C243

Steps in Finding Goodwill with Differential - -1. Find Differential 2. Allocate Differential 3. Plug Remaining Differential to GW GWDiff - -GWDiff = IFV - Sub's BV Implied Fair Value - -IFV = AC / % of CS acquired Sub's BV - -Sub's BV = Sub's SE #1 Sub's SE - -Sub's SE = Sub's CS + Sub's RE #2 Sub's SE - -Sub's SE = Sub's Assets - Sub's Liabilities True/False "The 'Investment in Subsidiary Account' is always eliminated in the consolidation process. - -True True/False

Company A exchanges 10,000 shares of $1 par common stock (FMV of $20 Per share) for all of the stock of Company B. Which entry is posted to the books of Company A in accounting for the business combination on the acquisition date? - -Debit to Investment in B for $200,000, Credit to Common Stock for $10,000, and Credit to Additional-Paid-in-Capital for $190,000. What is a common reason for a business combination involving a merger between companies? - - Allows a company to gain entry into a...