1. Question 1 84 points Saw Patterson Company Required an 80 interest in Granny Company on January 1, 2021 in exchange for various considerations totaling $720,000. At the acquisition date, the fair value of the noncontrolling interest was $180,000 Granny's book value of net sets on that date consisted of common stock of $390,000 and retained earnings of $410,000. Patterson attributed the excess of fair value over Granny's book value to undervalued equipment with a 10-year remaining life Reported net income for 2021 was $250,000 for Patterson and $100,000 for Granny Patterson distributed $80,000 in dividends during 2021; Granny paid $30,000 Grammy regularly sells inventory to Patterson at a 20 percent gross profit rate. Patterson consistently resold this merchandise in the year of acquisition or in the period immediately following. Transfers for the two years after this business combination were the following: Inventory Remaining at Year-End Year Transfer Price (at transfer price 2021 $80,000 $15,000 $90,000 S25,000 The following selected account balances are from the individual financial records of these two companies as of December 31, 2022 2022 Sales Cost of goods sold Operating expenses Dividend paid Inventory Equipment (net) Patterson $900,000 540,000 100,000 90,000 240.000 400.000 Granny $600,000 360,000 50.000 20,000 120,000 150.000 Answer the following questions: (Do not add dollar sign, do not add comma to your amount round the answer to the whole number) 1. What is the amount of Equity in Granny Farings for year 2022? 2. What is the amount of no controlling interest net income for 2022? 3. What was the balance of Investment in Granny on Patterson's book as of December 31, 2021? 4. Determine the consolidated balance of sales for 2022 3. Determine the consolidated balance of cost of goods sold for 2022 6. Determine the consolidated balance of operating expenses for 2022. 7. Determine the consolidated balance of inventory as of December 31, 2022 * Determine the consolidated balance of equipment as of December 31, 2022 1. Question 1 84 points Saw Patterson Company Required an 80 interest in Granny Company on January 1, 2021 in exchange for various considerations totaling $720,000. At the acquisition date, the fair value of the noncontrolling interest was $180,000 Granny's book value of net sets on that date consisted of common stock of $390,000 and retained earnings of $410,000. Patterson attributed the excess of fair value over Granny's book value to undervalued equipment with a 10-year remaining life Reported net income for 2021 was $250,000 for Patterson and $100,000 for Granny Patterson distributed $80,000 in dividends during 2021; Granny paid $30,000 Grammy regularly sells inventory to Patterson at a 20 percent gross profit rate. Patterson consistently resold this merchandise in the year of acquisition or in the period immediately following. Transfers for the two years after this business combination were the following: Inventory Remaining at Year-End Year Transfer Price (at transfer price 2021 $80,000 $15,000 $90,000 S25,000 The following selected account balances are from the individual financial records of these two companies as of December 31, 2022 2022 Sales Cost of goods sold Operating expenses Dividend paid Inventory Equipment (net) Patterson $900,000 540,000 100,000 90,000 240.000 400.000 Granny $600,000 360,000 50.000 20,000 120,000 150.000 Answer the following questions: (Do not add dollar sign, do not add comma to your amount round the answer to the whole number) 1. What is the amount of Equity in Granny Farings for year 2022? 2. What is the amount of no controlling interest net income for 2022? 3. What was the balance of Investment in Granny on Patterson's book as of December 31, 2021? 4. Determine the consolidated balance of sales for 2022 3. Determine the consolidated balance of cost of goods sold for 2022 6. Determine the consolidated balance of operating expenses for 2022. 7. Determine the consolidated balance of inventory as of December 31, 2022 * Determine the consolidated balance of equipment as of December 31, 2022
