I am sure that there is a bargain purchase gain for this question, Just not sure whether it is $15,000 gain or a different amount?  

I did not find any example about how to calculate bargain purchase gain from the 141R. So got confused now.

acquistion cost

plus fair value non controlling interest

plus fair value previously held equity interests

less fair value of net identifiable assets

= goodwill if +

= bargain gain if -

using this calculation I can not get to the $15,000 with the information posted.

how are you getting the $15,000?, I would like to see.\

I was taking acquisiton cost 10,000 shares *$9= $90,000

less fv net identifiable assets of $255+$115-$10
($360,000)

but that sure does not = $15,000 so I am screwing up some where with the information.

This question is from becker CPA-05095.

The $15,000 is extraordinary gain under purchasing method.

Here is the calculation from becker:

Asset - liabilities:                305,000

FV purchase price              (90,000)

Bargain purchase                 215,000

Noncurrent asset writedown (200,000)

Extraordinary gain         &n bsp;      15,000

So the calculation from purchase method is different from acquisition method? But I did not read from the 141 and 141R that tell they have such difference.

I feel you should be focusing only on acquisition method, and not on purchase method.

Based on your calculation above, purchase method is using book value?

Acquisition method uses fair value  and there is no longer any asset write up or down, and no extraordinary gains

it is now only bargain purchase gain or goodwill.  Goodwill goes to B/S as non current asset, but is not considered an intangible asset, and is tested for impairment and written down only if impaired.

I have this information from cpa review class post July 1, 2009 and using SFAS 141R.

the difference between that book value that you computed and the fair value that I computed, is called the differential.  and the differential is allocated to each asset and liability incrementally based on their individual fair values at the date of acquisition.

If you are in Wiley we can work on it together if you want.  I am going to review it tomorrow for test on Tuesday.