Saito Corporation's Stockholders' Equity on December 31,2014 Was as Follows

question 5

Essay

Saito Corporation's stockholders' equity on December 31,2014 was as follows:
On January 1,2015,Panata Corporation paid $300,000 for a 70% interest in Saito's common stock.On January 1,2015,the book values of Saito's assets and liabilities were equal to fair values.
Required:
1.Determine the book value of the common stockholders' equity for Saito Corporation on January 1,2015.
2.What is the amount of goodwill reported on the consolidated balance sheet for Panata Corporation (and Subsidiary)at January 2,2015?
3.What is the noncontrolling interest that appeared on a consolidated balance sheet for Panata Corporation (and Subsidiary)on January 2,2015?

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Definitions:

Doctrine Of Frustration

A legal principle that allows a contract to be discharged when an unforeseen event makes contractual obligations impossible to perform, or fundamentally changes the party’s principal purpose for entering into the contract.

Common Law

A legal system characterized by judicial decisions creating precedent, originating in England and forming the basis of legal systems in many English-speaking countries.

Clause

A specific provision or section within a contract or legal document that stipulates particular terms, conditions, or obligations.

Frustrated Contract

A legal concept describing a contract that, due to unforeseeable circumstances, has become impossible to perform, thus being voided without penalty to either party.