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    On January 1 2017 Holland Corporation Paid 8 Per Share

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    Amit Pandey
    Holland Corporation acquired 60,000 shares of Zeeland Corporation for $8 per share on January 1, 2017, representing a 60% ownership interest. Holland assessed Zeeland's equipment to be undervalued by $55,000 and determined Zeeland possessed unrecorded patents worth $285,000. Any remaining excess value was attributed to goodwill. The financial statements of both companies as of December 31, 2018 are provided to determine the goodwill allocation and Holland's investment in Zeeland balance on the consolidated statements.

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    On January 1 2017 Holland Corporation Paid 8 Per Share

    Uploaded by

    Amit Pandey
    149 views1 page
    Holland Corporation acquired 60,000 shares of Zeeland Corporation for $8 per share on January 1, 2017, representing a 60% ownership interest. Holland assessed Zeeland's equipment to be undervalued by $55,000 and determined Zeeland possessed unrecorded patents worth $285,000. Any remaining excess value was attributed to goodwill. The financial statements of both companies as of December 31, 2018 are provided to determine the goodwill allocation and Holland's investment in Zeeland balance on the consolidated statements.

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    Holland Corporation acquired 60,000 shares of Zeeland Corporation for $8 per share on January 1, 2017, representing a 60% ownership interest. Holland assessed Zeeland's equipment to be undervalued by $55,000 and determined Zeeland possessed unrecorded patents worth $285,000. Any remaining excess value was attributed to goodwill. The financial statements of both companies as of December 31, 2018 are provided to determine the goodwill allocation and Holland's investment in Zeeland balance on the consolidated statements.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    149 views1 page

    On January 1 2017 Holland Corporation Paid 8 Per Share

    Uploaded by

    Amit Pandey
    Holland Corporation acquired 60,000 shares of Zeeland Corporation for $8 per share on January 1, 2017, representing a 60% ownership interest. Holland assessed Zeeland's equipment to be undervalued by $55,000 and determined Zeeland possessed unrecorded patents worth $285,000. Any remaining excess value was attributed to goodwill. The financial statements of both companies as of December 31, 2018 are provided to determine the goodwill allocation and Holland's investment in Zeeland balance on the consolidated statements.

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    of 1

    Solved: On January 1 2017 Holland Corporation paid 8 per

    share

    On January 1, 2017, Holland Corporation paid $8 per share to a group of Zeeland Corporation
    shareholders to acquire 60,000 shares of Zeeland's outstanding voting stock, representing a 60
    percent ownership interest. The remaining 40,000 shares of Zeeland continued to trade in the
    market close to its recent average of $6.50 per share both before and after the acquisition by
    Holland. Zeeland's acquisition date balance sheet follows:

    On January 1, 2017, Holland assessed the carrying amount of Zeeland's equipment (5-year
    remaining life) to be undervalued by $55,000. Holland also determined that Zeeland possessed
    unrecorded patents (10-year remaining life) worth $285,000. Zeeland's acquisition-date fair
    values for its current assets and liabilities were equal to their carrying amounts. Any remaining
    excess of Zeeland's acquisition-date fair value over its book value was attributed to goodwill.

    The companies' financial statements for the year ending December 31, 2018, follow:

    At year-end, there were no intra-entity receivables or payables.

    a. Compute the amount of goodwill recognized in Holland's acquisition of Zeeland and the
    allocation of goodwill to the controlling and non-controlling interest.

    b. Show how Holland determined its December 31, 2018, Investment in Zeeland account
    balance.

    c. Prepare a worksheet to determine the amounts that should appear on Holland's December
    31, 2018, consolidated financial statements?

    On January 1 2017 Holland Corporation paid 8 per share

    ANSWER
    https://solvedquest.com/on-january-1-2017-holland-corporation-paid-8-per-share/

    Reach out to [email protected] for enquiry.


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