Fortuna Company issued 70,000 shares of $1 par stock, with a fair value of $20 per share, for 80% of the outstanding shares of Acappella Company. The firms had the following separate balance sheets prior to the acquisition:
Book values equal fair values for the assets and liabilities of Acappella Company, except for the property, plant, and equipment, which have a fair value of $1,600,000.
Required: a. What is the Goodwill/Gain associated with the acquisition:________________________
b. What is the Non Controlling Interest recorded in the consolidated balance sheet:______________
c. What is the balance of the assets and liabilities side of the consolidated balance sheet after the acquisition:________________
d.Record the two elimination entries associated with the acquisition of the company