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Excerpt from ASC 460-10-55-23
Definition from ASC 860-10-20
Shareholder |
Shares |
Percent ownership |
Carrying value of underlying net assets |
---|---|---|---|
Investor A
|
40
|
40%
|
$400
|
Investor B
|
30
|
30%
|
300
|
Investor C
|
30
|
30%
|
300
|
Total |
100
|
100%
|
$1,000
|
Shareholder |
Shares |
Percent ownership |
Carrying value of underlying net assets, prior to change in interest computation |
Fair value |
---|---|---|---|---|
Investor A
|
28
|
28%
|
$400
|
$2,800
|
Investor B
|
21
|
21%
|
300
|
2,100
|
Investor C
|
21
|
21%
|
300
|
2,100
|
Investor D
|
15
|
15%
|
1,500
|
1,500
|
Investor E
|
15
|
15%
|
1,500
|
1,500
|
Total
|
100
|
100%
|
$4,000
|
$10,000
|
Fair value per share
|
$100.00
|
a
|
Investor A’s carrying value per share
|
14.29
|
b
|
Excess paid over carrying value per share
|
85.71
|
|
Shares issued to Investors D and E by Newco
|
x 30
|
|
Total excess paid over carrying value
|
2,571
|
|
Investor A’s % ownership in Newco
|
x 28%
|
|
Investor A’s change in interest gain
|
$720
|
|
a – Investors D and E each paid $1,500 in exchange for 15 shares, or $100 per share.
b – Prior to Newco’s issuance of shares to Investors D and E, Investor A held 28 shares of Newco with a carrying value of $400, or $14.29 per share.
|
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