A primary beneficiary company has established control over a VIE by guaranteeing its long term debt and by establishing an income distribution contract The balance sheet of the VIE on the acquisition date was as follows The fair values of the land and buildings are $800,000 The fair value of the eq...

Determination and distribution of excess sched ...

A primary beneficiary company has established control over a VIE by guaranteeing its long term debt and

Question:

A primary beneficiary company has established control over a VIE by guaranteeing its long term debt and by establishing an income contract. The of the VIE on the acquisition date was as follows:

The fair values of the land and buildings are $800,000. The fair value of the equipment is $400,000. The fair value of the company's net (of debt) assets is estimated to be $600,000.
Prepare the distribution of excess schedule.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...