Calculate the percentage of soho acquired by perry company

Question

Consolidated Balance Sheet Workpaper

On January 1, 2011, Perry Company purchased 8,000 shares of Soho Company"s common stock for $120,000. Immediately after the stock acquisition, the statements of financial position of Perry and Soho appeared as follows:

Assets	Perry	Soho
Cash	$ 39,000	$ 19,000
Accounts receivable	53,000	31,000
Inventory	42,000	25,000
Investment in Soho Company	120,000
Plant assets	160,000	110,500
Accumulated depreciation-plant assets	(52,000)	(19,500)
Total	$362,000	$166,000
Liabilities and Owners" Equity
Current liabilities	$ 18,500	$ 26,000
Mortgage notes payable	40,000
Common stock, $10 par value	120,000	100,000
Other contributed capital	135,000	16,500
Retained earnings	48,500	23,500
Total	$362,000	$166,000

Required:

1. Calculate the percentage of Soho acquired by Perry Company. Prepare a schedule to compute the difference between book value of equity and the value implied by the purchase price. Any difference between the book value of equity and the value implied by the purchase price relates to subsidiary plant assets.
2. Prepare a consolidated balance sheet workpaper as of January 1, 2011.
3. Suppose instead that Perry acquired the 8,000 shares for $20 per share including a $5 per share control premium. Prepare a computation and allocation of difference schedule.