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Page Company Purchased an 80% Interest in the Common Stock

question 40

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Page Company purchased an 80% interest in the common stock of the Seed Company for $600,000 on January 1, 2019, when Seed Company had the following stockholders' equity:
 Common stock, $10 par $300,000 Cumulative preferred stock, 10%,$10 par 100,000 Paid-in capital in excess of par, common 50,000 Retained earnings 200,000\begin{array} { l r } \text { Common stock, } \$ 10 \text { par } & \$ 300,000 \\\text { Cumulative preferred stock, } 10 \% , \$ 10 \text { par } & 100,000 \\\text { Paid-in capital in excess of par, common } & 50,000 \\\text { Retained earnings } & 200,000\end{array} Any excess of cost over book value on the common stock purchase was attributed to goodwill.Page does not hold any of Seed's preferred stock.Seed had net income of $40,000 during 2019 and paid no dividends.

The preferred stock is one year in arrears on January 1, 2019.The goodwill that will appear on the consolidated balance sheet prepared on January 1, 2019, is ____.


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Rapport

A positive, mutual relationship characterized by trust, understanding, and good communication, often established between people in personal and professional contexts.

Sales Presentation

A formal pitch or demonstration given to potential buyers, showcasing a product or service's features, benefits, and value proposition.

Demonstration

An action or process of showing the capability or features of a product or service to a potential customer, often part of a sales presentation.

Initial Impression

The first and immediate perception or judgment formed about something or someone.

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