Whitney Company acquires an 80% interest in Masters Company common stock on January 1, 2015. Appraisals of

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Whitney Company acquires an 80% interest in Masters Company common stock on January 1, 2015. Appraisals of Masters’ assets and liabilities are performed, and Whitney ends up paying an amount that is greater than the fair value of Masters’ net assets and reflects a premium to achieve control. The fair value of the NCI is $235,000. The following partial determination and distribution of excess schedule is created on January 1, 2015, to assist in putting together the consolidated financial statements:

Fair value of subsidiary Less book value of interest acquired: Common stock. Paid in capital in excess of par

Adjustment of identifiable accounts: Inventory Investments Land. Buildings Equipment. Patent Trademark

Prepare amortization schedules for the years 2015, 2016, 2017, and 2018.

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Advanced Accounting

ISBN: 978-1305084858

12th edition

Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng

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