Papiez company balance sheet preceding the acquistiion

Okay.. I am so confused by the combined balance sheet after an acquisition. I knew it creates Goodwill but I thought it was because purchase price is usually bigger than the value of company.. like paying control premium and stuff.

On January 1, 20X9, Gulliver Corporation acquired 80 percent of Sea-Gull Company’s common stock for $160,000 cash. The fair value of the noncontrolling interest at that date was determined to be $40,000. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition: At the date of...

Certain balance sheet accounts of a foreign subsidiary of Rowan, Inc. (Rowan) at December 31, 20X6, have been translated into U.S. dollars as follows: The subsidiary's functional currency is the currency of the country in which it is On January 1, 20X9, Gulliver Corporation acquired 80 percent of Sea-Gull Company’s common stock for $160,000 cash. The fair value of the noncontrolling interest at that date was determined to be $40,000. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition: At the date of... Selected balance sheet data at December 31 2009 are as follows 1 Based on the from ACCT 05544 at Kean University Balance sheet information Venus just prior to the acquisition is given here: At the date of the business combination, Venus’s net assets and liabilities approximated fair value except for inventory, which had a fair value of $60,000, land... At the time of acquisition, the fair value of the common shares of Company B held by the noncontrolling interest was $100,000. Company B's balance sheet contained the following balances: For the year ended December 31, 2009, Company B reported net income of $100,000 and paid dividends of $40,000.

Selected balance sheet data at December 31 2009 are as follows 1 Based on the from ACCT 05544 at Kean University The Reporting Entity and Consolidated Financial Statements Multiple Choice Questions On January 3, 2009, Jane Company acquired 75 percent of Miller Company's outstanding common stock for cash. The fair value of the noncontrolling interest was equal to a proportionate share of the book value of Miller Company's ne 8. Based on the preceding information, the amount of differential associated with the acquisition is: A. $0. B. $58,000. C. $22,000. D. $36,000. 9. Based on the information provided, the consolidated balance sheet of Enya and Celtic will reflect goodwill in the amount of: 10. The financial reporting consequences for a 100% stock acquisition vs. a merger are the same. The economic substances of the two forms of the transaction are identical and, therefore, so are the resulting financial statements. 20. (40 minutes) (Prepare a consolidated balance sheet using the acquisition method). a. The balance sheet is a reflection of the assets and the liabilities owned by the company at a certain point in time. The strength of a company's balance sheet can be evaluated by three broad categories of investment-quality measurements: working capital adequacy, asset performance, and capitalization structure.