Pennington Corporation Purchased 80% of the Voting Common Stock of Stafford

question 11

Essay

Pennington Corporation purchased 80% of the voting common stock of Stafford Corporation for $3,200,000 cash on January 1,2016.On this date the book values and fair values of Stafford Corporation's assets and liabilities were as follows:
Required:
Prepare a schedule showing how the difference between Stafford Corporation's implied value and the book value of the net assets acquired should be allocated.

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Definitions:

Communication System

A collection of individual communication networks, transmission systems, relay stations, tributary stations, and data terminal equipment designed for efficient and effective transmission of information.

Genetically Wired

An expression referring to the way in which an organism's genetic makeup influences its behavior, traits, or abilities.

Anthropomorphism

The attribution of human traits, emotions, or intentions to non-human entities, including animals and objects.

Intelligence Ingredient

A fundamental component or factor that contributes to the makeup or functioning of intelligence.