On June 30, 2011, Plaster, Inc., paid ($916,000) for 80 percent of Stucco Companys outstanding stock. Plaster
Question:
On June 30, 2011, Plaster, Inc., paid \($916,000\) for 80 percent of Stucco Company’s outstanding stock.
Plaster assessed the acquisition-date fair value of the 20 percent noncontrolling interest at \($229,000\).
At acquisition date, Stucco reported the following book values for its assets and liabilities:
On June 30, Plaster allocated the excess acquisition-date fair value over book value to Stucco’s assets as follows:
Additional Information for 2011
• On December 1, Stucco paid a \($40,000\) dividend. During the year, Plaster paid \($100,000\) in dividends.
• During the year, Plaster issued \($800,000\) in long-term debt at par.
• Plaster reported no asset purchases or dispositions other than the acquisition of Stucco.
Prepare a 2011 consolidated statement of cash flows for Plaster and Stucco. Use the indirect method of reporting cash flows from operating activities.
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