3) (10 potas), Cossolideted Forkebees as of 12/31/2023 Page Layout Formulas B Format Painter Clipboard 5 DATES AVAILABLE Updates for Office xfx Common mistakes 1) Compute IV IV = price paid/\%acquired Corrections: MUST enter the price paid to the cell of Parent price, do NOT enter the price paid to the cell of IV 2) RE of NCl at acquisition Equal: share of NCl in the RE of the SUB + share of NCl in the excess of cost over BV of equity Use the DD schedule to compute 3) Enter negative numbers in the eliminations section of the worksheet Correction: must enter positive numbers in the journal entries 4) distributed to NCl : should take numbers from the IDS Do NOT take the depreciation expense as the distributed to NCl or controlling interest. 5) when computing consolidated depreciation expense, must see accounts adjusted to find depreciable accounts. In the example, the depreciable accounts = depreciable fixed assets. Only depreciate the excess of FV over BV. In the example, the depreciable cost =100,000. Useful life =5 years Problem1 ansiyers Sheet1 Ready is Accessibility: Investigate NASDAQ 0.87% On 1/1/2023 Parent paid $450,000 cash to acquire 90% common stock of SUB. On that day, the balance sheet of Sub as follows: 2 The market value of depreciable assets is $120,000 higher that their book value. The remaining life of depreciable assets is 10 years For other assets and liabilities, the book values are the same with market values. The firm depreciates assets using straight line method, zero salvage vahue During 2023 , the revenue, expense, dividend payment of two firms are given in the worksheet (see the "answers" sheet). 2) ( 8 points). Prepare the necessary journal entries for the consolidation as of 12/31/2023 3) (10 potas), Cossolideted Forkebees as of 12/31/2023 Page Layout Formulas B Format Painter Clipboard 5 DATES AVAILABLE Updates for Office xfx Common mistakes 1) Compute IV IV = price paid/\%acquired Corrections: MUST enter the price paid to the cell of Parent price, do NOT enter the price paid to the cell of IV 2) RE of NCl at acquisition Equal: share of NCl in the RE of the SUB + share of NCl in the excess of cost over BV of equity Use the DD schedule to compute 3) Enter negative numbers in the eliminations section of the worksheet Correction: must enter positive numbers in the journal entries 4) distributed to NCl : should take numbers from the IDS Do NOT take the depreciation expense as the distributed to NCl or controlling interest. 5) when computing consolidated depreciation expense, must see accounts adjusted to find depreciable accounts. In the example, the depreciable accounts = depreciable fixed assets. Only depreciate the excess of FV over BV. In the example, the depreciable cost =100,000. Useful life =5 years Problem1 ansiyers Sheet1 Ready is Accessibility: Investigate NASDAQ 0.87% On 1/1/2023 Parent paid $450,000 cash to acquire 90% common stock of SUB. On that day, the balance sheet of Sub as follows: 2 The market value of depreciable assets is $120,000 higher that their book value. The remaining life of depreciable assets is 10 years For other assets and liabilities, the book values are the same with market values. The firm depreciates assets using straight line method, zero salvage vahue During 2023 , the revenue, expense, dividend payment of two firms are given in the worksheet (see the "answers" sheet). 2) ( 8 points). Prepare the necessary journal entries for the consolidation as of 12/31/2023