RUNNING HEAD: Week 3 Assignment 1
Week 3 Assignment
Megan Jorcke
Ashford University
ACC 612: Advanced Financial Accounting
Professor Majors
7 October 2019
Week 3 Assignment 2
3-25
Roof corporation acquired 80 percent of the stock of Gable Company by issuing shares of its
common stock with a fair value of $192,000. At that time, the fair value of the noncontrolling
interest was estimated to be $48,000 and the fair values of Gabe’s identifiable assets and
liabilities were $310,000 and $95,000, respectively. Gabe’s assets and liabilities had book values
of $220,000 and $95,000, respectively.
Compute the following amounts to be reported immediately after the combination
a. Investment in Gable reported by roof
Investment Balance $192,000
b. Increase in identifiable assets of the combined entity
Total Assets increase $310,000
c. Increase in total liabilities of the combined entity
Total Liabilities increase $95,000
d. Goodwill for the combined entity
