7. Receivables

8. Buildings, net of depreciation

9. Investment in subsidiary

10.Goodwill

11. Amortization during year 1 related to any excess values at the acquisition date.

12. Consolidated net income

Give the correct consolidated balance at the end of year 1 for each question.

For this problem, show all work. (4 1/2 points) On Jan. 1 Year 1, P spent 250 million to buy 100% of S. At that date, some key numbers (in millions) are: S common stock 15 S paid-in capital 20 S retained earnings 80 Total book equity = 115 All of the assets and liabilities of S had book values = fair values, exc8pt: Intangible assets of S (book value = zero, but fair value = 30. Life = 5 years. Building had book value = 120 but fair value = 130. Life = 10 years. At the end of year 1, the books of the two companies reflect the following: S Book value Book value 300 Cash 63 105 12 20 13 10 30 300 269 100 0 26 0 0 1050 0 198 26 38 10 Receivables (25 receivable by P from S) Inventory Land Buildings (net of deprec.) Investment in S Intangible assets Goodwill total assets Accounts payable (25 payable by S to P) Accrued liabilities long-term bonds total liabilities Common stock of P, at par Common stock of S, at par Additional paid-in capital retained earnings (ending) total equity Total liabilities + equity Revenues Expenses Income from subsidiary Dividends (S paid 10 to P) Beginning Retained earnings Ending retained earnings 29 340 395 25 9 57 15 85 20 545 655 1050 106 141 198 294 136 100 203 29 30 10 80 455 545 106