Determine the amount and account


Nichols company acquired 80% of Smith company's common stock and 40% of its non voting, cumulative preferred stock. the consideration transferred by Nichols was $1,200,000 for the common and $124,000 for the preferred. any excess acquisition date fair value over book value is considered goodwill. What is the capital structure of Smith immediately prior to the acquisition. Determine the amount and account to be recorded for Nichols' investment in Smith.

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Accounting Basics: Determine the amount and account
Reference No:- TGS056531

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