Assigned the rest of the excess fair value over book value


Pitino acquired 90 percent of Brey's outstanding shares on January 1, 2009, in exchange for $342,000 in cash. The subsidiary's stockholders equity accounts totaled $326,000 and the non-controlling interest had a fair value of $38,000 on that day. However, a building (with a nine year remaining life) in Brey's accounting records was undervalued by 18,000. Pitino assigned the rest of the excess fair value over book value to Brey's patended technology (Six year remaining life).

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Accounting Basics: Assigned the rest of the excess fair value over book value
Reference No:- TGS083637

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