Reid Corporation's balance sheet at January 1, 20X9 reflected the following balances: Cash & Receivables $...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Reid Corporation's balance sheet at January 1, 20X9 reflected the following balances: Cash & Receivables $ 30,000 Inventory $ 75,000 Land $125,00 Building & Equipment (net) $850,000 Common Stock $550,000 Retained Earnings $400,000 $1,180,000 Total Liabilities & Stockholders E $1,180,000 Total Assets $ 90,000 Accounts Payable $150,000 Income Taxes Payable $ 90,000 Bonds Payable Brown Corporation entered into an active acquisition program and acquired 75 percent of Reid's common stock on January 2, 20X9 for $720,000. The fair value of noncontrolling interest at that date wad determined to be $150,000. A careful review of the fair value of Reid's assets and liabilities indicated the following: Inventory Land Building & Equipment (net) Book Value $150,000 $ 90,000 $ 850,000 a. Inventory b. Land Goodwill is assigned proportionately to Brown and the noncontrolling shareholders. Required: Compute the appropriate amount related to Reid to be included in the consolidated balance sheet immediately following the acquisition for each of the following items: Fair Value $190,000 $ 70,000 $975,000 C. Building and equipment (net) d. Good well e. Investment in Reid Corporation f. Noncontrolling interest Reid Corporation's balance sheet at January 1, 20X9 reflected the following balances: Cash & Receivables $ 30,000 Inventory $ 75,000 Land $125,00 Building & Equipment (net) $850,000 Common Stock $550,000 Retained Earnings $400,000 $1,180,000 Total Liabilities & Stockholders E $1,180,000 Total Assets $ 90,000 Accounts Payable $150,000 Income Taxes Payable $ 90,000 Bonds Payable Brown Corporation entered into an active acquisition program and acquired 75 percent of Reid's common stock on January 2, 20X9 for $720,000. The fair value of noncontrolling interest at that date wad determined to be $150,000. A careful review of the fair value of Reid's assets and liabilities indicated the following: Inventory Land Building & Equipment (net) Book Value $150,000 $ 90,000 $ 850,000 a. Inventory b. Land Goodwill is assigned proportionately to Brown and the noncontrolling shareholders. Required: Compute the appropriate amount related to Reid to be included in the consolidated balance sheet immediately following the acquisition for each of the following items: Fair Value $190,000 $ 70,000 $975,000 C. Building and equipment (net) d. Good well e. Investment in Reid Corporation f. Noncontrolling interest
Expert Answer:
Answer rating: 100% (QA)
Inventory Fair value 190000 Land Fair value 70000 Building and equipment Fair value 975000 Goo... View the full answer
Related Book For
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
Posted Date:
Students also viewed these accounting questions
-
Slim Corporations balance sheet at January 1, 20X7, reflected the following balances: Ford Corporation entered into an active acquisition program and acquired 80 percent of Slims common stock on...
-
Astor Corporations balance sheet at January 1, 20X7, reflected the following balances: Phel Corporation, which had just entered into an active acquisition program, acquired 100 percent of Astors...
-
Required Information C4-6 Recording/Posting Statements-Requires 2, LO 4-4] Transactions and Adjustments, and Preparing Trial Balances and Financial Calculating Depreciation and Interest (Chapters 2,...
-
Explain why a decline in investment spending caused by a change in business expectations leads to a fall in consumer spending.
-
Compare how prior service cost is treated under IFRS relative to its treatment under U.S. GAAP.
-
Describe the latest discoveries of values and bounds for Ramsey numbers.
-
Guatemalan Imports is the only company with reliable sources for its imported gifts. The company does a brisk business with specialty stores such as Pier 1 Imports. Guatemalan Imports' recent success...
-
Cortez Co. began operations on July 1. It uses a perpetual inventory system. During July, the company had the following purchases and sales. Instructions(a) Determine the ending inventory under a...
-
Super Golf Products is considering whether to upgrade its equipment. Managers are considering two options. Equipment manufactured by Preston Inc. costs $1,200,000 and will last four years and have no...
-
X rays with initial wavelength 0.0665 nm undergo Compton scattering. What is the longest wavelength found in the scattered x rays? At which scattering angle is this wavelength observed?
-
1.Create a graph of temperature and volume data. Place temperature (remember to use degrees Celsius) on the x-axis and volume (mL) on the y-axis via Microsoft Excel and then, Insert a linear...
-
What is a dependency proceeding?
-
You cut a slit in a sheet of paper and use it to produce a diffraction pattern on a screen \(2 \mathrm{~m}\) away from the slit. If, using a laser of wavelength \(543.5 \mathrm{~nm}\), you measure a...
-
A double-slit barrier with slit separation distance \(d\) is a distance \(L\) from a screen, with \(L \gg d\). When green laser light \(\left(\lambda_{\mathrm{g}}=543 \mathrm{~nm} ight)\) passes...
-
What are the main arguments for and against treating prenatal drug exposure as a kind of child abuse or neglect?
-
What was the common law status of children of unmarried parents? Why were these children treated so harshly?
-
Form W-4V is similar to a Form W-4, Employee Withholding Allowance Certificate, in that it is completed by the taxpayer and informs the payer how much in tax to withhold from payments. What type of...
-
If the cylinder described in Problem 21.3 were initially heated to 500F, how long would it take for the center of the cylinder to cool to 240F if it were constructed of a. Copper? b. Brass? c. Nickel?
-
In the LMK partnership, Luis's capital is $40,000, Marty's is $50,000, and Karl's is $30,000. They share income in a 4:1:1 ratio, respectively. Karl is retiring from the partnership. Required Prepare...
-
Home Products Corporation, which sells a broad line of home detergent products, owns 75 percent of the stock of Level Brothers Soap Company. During 20X8, Level Brothers sold soap products to Home...
-
Hospitals, voluntary health and welfare organizations, and other not-for-profit organizations often rely heavily on donations of volunteers time and equipment, supplies, or other assets. Required a....
-
Sales discounts should appear in the financial statements a. as an addition to inventory. b. as an addition to sales. c. as an operating expense. d. as a deduction from sales.
-
What is the effect of Rice Corporation's 2020 inventory error on net income for 2021? a. No effect b. Understate c. Overstate
-
An error understated Rice Corporation's December 31 , (2020, ending inventory by \(\$ 40,000\). What effect will this error have on total assets and net income for 2020? Assets a. No effect b. No...
Study smarter with the SolutionInn App