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1. Martha Corporation acquired 80% of Steward Company on January 1, Year 1, for $160,000. On that date, the fair value of the noncontrolling interest
1. Martha Corporation acquired 80% of Steward Company on January 1, Year 1, for $160,000. On that date, the fair value of the noncontrolling interest was $40,000, and Steward reported retained earnings of $50,000 and had $100,000 of common stock. Martha used the equity method in accounting for its investment in Steward. Trial balance data for the two companies on December 31, Year 5, are as follows: Additional information: Additional information: a. On the date of acquisition, the fair value of Stewards Buildings and Equipment was $50,000 more than book value, with 10-years remaining tseful life left. b. There was $10,000 intercorporate receivables and payables at the end of Year 5 . Required: Determine the following consolidated totals for the two company for Year 5 : 1. Martha Corporation acquired 80% of Steward Company on January 1, Year 1, for $160,000. On that date, the fair value of the noncontrolling interest was $40,000, and Steward reported retained earnings of $50,000 and had $100,000 of common stock. Martha used the equity method in accounting for its investment in Steward. Trial balance data for the two companies on December 31, Year 5, are as follows: Additional information: Additional information: a. On the date of acquisition, the fair value of Stewards Buildings and Equipment was $50,000 more than book value, with 10-years remaining tseful life left. b. There was $10,000 intercorporate receivables and payables at the end of Year 5 . Required: Determine the following consolidated totals for the two company for Year 5
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