[adaherro]

Hey guys, i have a question i sort of made up. I remember seeing this question either on this forum or somewhere else, but i can’t locate it. I’m going to try to re-create.

Company A acquires 100% of Company B by purchasing all of B’s stock by issuing 1000 shares of A’s stock.

FMV of Company A’s Stock – $10 //// Par Value $1
FMV of Company B’s Stock – $8 //// 1000 Shares

What would be the entry?

Thanks for the help, but for whatever reason, this is really bothering me that i can’t figure it out. I’m getting this entry, but it doesn’t seem right.

Investment in B — $10,000
Goodwill ————-2,000
Common Stock A ————–1,000
APIC ————————11,000

Thanks in advance.

[AndreA]

Dr: Investment in B
Cr: CS at par value
Cr: APIC

if less than 50%

In order to record 100% acquisition you need to provide more information. My advice review the consolidation lessons. I believe in 2020 they changed how to record the Goodwill.

[Author]

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