500 0 Ford Corporation paid $1,700,000 for a 35% interest in Edison Corporation's outstanding voting stock on January 1, 2021. The book Values and Fair Values of Edison's assets and Liabilities on January 1, along with amortization information are as follows (in thousands). Book Value Fair Value Difference Cash 500 Account's receivables - net (received in current year) 750 770 20 Inventories (sold in 2021) 1200 200 Other current assets 210 0 Land Buildings - net (10 year remaining life) Equipment-net (5 year remaining life) Total Assets 6410 6880 1000 210 1000 1850 1100 1500 1950 750 500 100 -350 470 10 Accounts payable (paid in current year.) Other current liabilities Bond's payable (due December 1, 2026) Capital stock. $10 par Retained Earnings Total Liabilities and S/E 860 180 1250 0 250 850 180 1000 3000 1380 6410 Edison corporation reported net income of $1,200,000 for 2021 and paid dividends of $275,000. Required (prepare in thousands) 1. Perform the preliminary calculation to determine the excess of fair value over book value for the initial investment in Edison Prepare a schedule to assign the excess of cost over book value - see the slide titled "Cost/Book Value Assignment". 3. Prepare an Amortization schedule for the cost/book value differences similar to the one in the power point presentation. See the Slide "Amortization and Investment Income". Calculated the total Income from Edison for 2021. Calculate the balance in the "Investment in Edison" account at December 31, 2021. 0 750 Ford Corporation paid $1,700,000 for a 35% interest in Edison Corporation's outstanding voting stock on January 1, 2021. The book Values and Fair Values of Edison's assets and Liabilities on January 1, along with amortization information are as follows (In thousands). Book Value Fair Value Difference Cash 500 Account's receivables - net (received in current year) 20 Inventories (sold in 2021) 1000 200 Other current assets 210 210 Land Buildingsnet (10 year remaining life) Equipment - net (s year remaining life) Total Assets 500 770 1200 1000 1850 1100 6410 1500 1950 750 6880 0 500 100 -350 470 3 4 5 16 17 18 19 20 21 22 23 24 Accounts payable (paid in current year.) Other current liabilities Bond's payable (due December 1, 2026) Capitol stock, S10 par Retained Earnings Total abilities and S/E 860 180 1250 10 0 250 850 180 1000 3000 1380 6410 26 25 Edison corporation reported net income of $1,200,000 for 2021 and paid dividends of $275,000 27 Required (prepare in thousands) 28. Perform the preliminary calculation to determine the excess of fair value over book value for the initial investment in Edison 292 Prepare a schedule to assign the excess of cost over book value - see the slide titled "Cost/Book Value Assignment" 30 3. Prepare an Amortization schedule for the cost/book value differences similar to the one in the power point presentation. See the 31 slide "Amortization and Investment Income". 33. Calculated the total income from Edison for 2021 34. Calculate the balance in the investment in Edison account at December 31, 2021. 32 35 500 0 Ford Corporation paid $1,700,000 for a 35% interest in Edison Corporation's outstanding voting stock on January 1, 2021. The book Values and Fair Values of Edison's assets and Liabilities on January 1, along with amortization information are as follows (in thousands). Book Value Fair Value Difference Cash 500 Account's receivables - net (received in current year) 750 770 20 Inventories (sold in 2021) 1200 200 Other current assets 210 0 Land Buildings - net (10 year remaining life) Equipment-net (5 year remaining life) Total Assets 6410 6880 1000 210 1000 1850 1100 1500 1950 750 500 100 -350 470 10 Accounts payable (paid in current year.) Other current liabilities Bond's payable (due December 1, 2026) Capital stock. $10 par Retained Earnings Total Liabilities and S/E 860 180 1250 0 250 850 180 1000 3000 1380 6410 Edison corporation reported net income of $1,200,000 for 2021 and paid dividends of $275,000. Required (prepare in thousands) 1. Perform the preliminary calculation to determine the excess of fair value over book value for the initial investment in Edison Prepare a schedule to assign the excess of cost over book value - see the slide titled "Cost/Book Value Assignment". 3. Prepare an Amortization schedule for the cost/book value differences similar to the one in the power point presentation. See the Slide "Amortization and Investment Income". Calculated the total Income from Edison for 2021. Calculate the balance in the "Investment in Edison" account at December 31, 2021. 0 750 Ford Corporation paid $1,700,000 for a 35% interest in Edison Corporation's outstanding voting stock on January 1, 2021. The book Values and Fair Values of Edison's assets and Liabilities on January 1, along with amortization information are as follows (In thousands). Book Value Fair Value Difference Cash 500 Account's receivables - net (received in current year) 20 Inventories (sold in 2021) 1000 200 Other current assets 210 210 Land Buildingsnet (10 year remaining life) Equipment - net (s year remaining life) Total Assets 500 770 1200 1000 1850 1100 6410 1500 1950 750 6880 0 500 100 -350 470 3 4 5 16 17 18 19 20 21 22 23 24 Accounts payable (paid in current year.) Other current liabilities Bond's payable (due December 1, 2026) Capitol stock, S10 par Retained Earnings Total abilities and S/E 860 180 1250 10 0 250 850 180 1000 3000 1380 6410 26 25 Edison corporation reported net income of $1,200,000 for 2021 and paid dividends of $275,000 27 Required (prepare in thousands) 28. Perform the preliminary calculation to determine the excess of fair value over book value for the initial investment in Edison 292 Prepare a schedule to assign the excess of cost over book value - see the slide titled "Cost/Book Value Assignment" 30 3. Prepare an Amortization schedule for the cost/book value differences similar to the one in the power point presentation. See the 31 slide "Amortization and Investment Income". 33. Calculated the total income from Edison for 2021 34. Calculate the balance in the investment in Edison account at December 31, 2021. 32 35