#6

Peace Corporation acquired 75 percent of the ownership of Symbol Company on January 1,20X1. The falr value of the noncontrolling Interest at acquisition was equal to Its proportionate share of the fair value of the net assets of Symbol. The full amount of the differential at acquisition was attributable to bulldings and equipment, which had a remaining useful life of eight years. Financial statement data for the two companies and the consolidated entity at December 31,206, are as follows: All unrealized profit on intercompany inventory sales on January 1, 20X6, were ellminated on Peace's books. All unrealized inventory profits at December 31,206, were ellminated on Symbol's books. Assume Peace uses the fully adjusted equity method and that Peace does not make the optional depreclation consolidation worksheet entry. a. For the bulldings and equipment held by Symbol when Peace acquired it and still on hand on December 31,206, by what amount had bulldings and equipment increased in value from their acquisition to the date of combination with Peace? b. What amount should be reported as accumulated depreciation for the consolidated entity at December 31,206 (assuming Peace does not make the optional accumulated depreclation consolidation entry)? c. If Symbol reported capital stock outstanding of $60,000 and retained earnings of $30,000 on January 1,201, what amount did Peace pay to acquire its ownership of Symbol? d. What balance does Peace report as its investment in Symbol at December 31,206 ? e. What amount of intercorporate sales of Inventory occurred in 206 ? f. What amount of unrealized Inventory profit exists at December 31,206? Peace Corporation acquired 75 percent of the ownership of Symbol Company on January 1,20X1. The falr value of the noncontrolling Interest at acquisition was equal to Its proportionate share of the fair value of the net assets of Symbol. The full amount of the differential at acquisition was attributable to bulldings and equipment, which had a remaining useful life of eight years. Financial statement data for the two companies and the consolidated entity at December 31,206, are as follows: All unrealized profit on intercompany inventory sales on January 1, 20X6, were ellminated on Peace's books. All unrealized inventory profits at December 31,206, were ellminated on Symbol's books. Assume Peace uses the fully adjusted equity method and that Peace does not make the optional depreclation consolidation worksheet entry. a. For the bulldings and equipment held by Symbol when Peace acquired it and still on hand on December 31,206, by what amount had bulldings and equipment increased in value from their acquisition to the date of combination with Peace? b. What amount should be reported as accumulated depreciation for the consolidated entity at December 31,206 (assuming Peace does not make the optional accumulated depreclation consolidation entry)? c. If Symbol reported capital stock outstanding of $60,000 and retained earnings of $30,000 on January 1,201, what amount did Peace pay to acquire its ownership of Symbol? d. What balance does Peace report as its investment in Symbol at December 31,206 ? e. What amount of intercorporate sales of Inventory occurred in 206 ? f. What amount of unrealized Inventory profit exists at December 31,206