1 Homework chapter 3 worksheet part 1 2 3 Common Information 4 Ownership Interest 5. 16 7 Price Paid 8 9 0 Parent paid $400,000 to acquire 80% equity of SUB on 112022 The firm uses the simple equity method for consolidation 80% Cash 400,000 Number of Market Shares Price per Total 400,000 1 Acquired Company's Balance Sheet Before Purchase on 1/1/2022 2 3 Assets 4 Cash Market Book Value Value Life Book Market Value Value Life 5 Current assets 6 Depreciable fixed assets (net) 60,000 60,000 150,000 150,000 310,000 400,000 Liabilities Current liabilities 150,000 150,000 7 Common Stock 70,000 5 Additional paid in ca 150,000 Retained Earnings 150,000 8 9 20 21 Goodwill 22 Total Assets 520,000 610,000 Total Liabilities and Equity 520,000 150,000 23 H K (90,000) cost: BV-MV for dep calc 90,000 24 Question 1(5 points). Prepare the value analysis and determination and distribution of excess schedule (DD schedule) at the acquisition 1/1/2022 Company Implied Fair Parent Price NCI Value 25 Value Analysis 26 Price Paid 27 Fair Value of Net Assets 28 Goodwill 29 30 31 Determination and Distribution of 32 Excess Schedule 33 34 Fair Value of Subsidiary 85 Less Book Value of Interest Acquired 36 Value (80%) (20%) Company Parent Value Price NCI (20%)