on december 31 2012 pacifica inc acquired 100 percent of voting stoc of seguro 384427

On December 31, 2012, Pacifica, Inc., acquired 100 percent of voting stoc of Seguros Company. Pacifica will maintainSeguros as a wholly owned subisidiary with its own legal and accounting identity. The consideration transferred to the owner subsidiary with its own legal and accounting identity. The consideration transferred to the owner of Seguros included 50,000 newly issued pacifica common shares ($20 market value, 5 par value) and an agreement to pay an additional $130,000 cash if Seguros meets certain project completion goals by Dec. 31 2013. Pacifica estimates a 50 percent probability that Seguros will be successful in meeting these goals and uses a 4 percent discount rate to represent the time value of money. Immediately prior to the acquisition, the following data for both firms were available: Revenues (1,200,000) Exp 875,000 net income (325,000) R.E 1/1/12… (950,000) Net income (325,000) Dividends paid 90,000 Retained earnings 12/31/12 (1,185,000)