Difference between book value of equity acquired

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Question - On January 1, 2013, Pam Company purchased an 85% interest in Shaw Company for $537,300. On this date, Shaw Company had common stock of $401,900 and retained earnings of $135,400.

An examination of Shaw Company's assets and liabilities revealed that their book value was equal to their fair value except for marketable securities and equipment:

Book Value Fair Value

Marketable securities $19,800 $45,000

Equipment (net) 119,600 139,900

Required - Computation and Allocation Schedule for the difference between book value of equity acquired and the value implied by the purchase price.

Reference no: EM132698483

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