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8 Partly correct Mark065 of 2.50 Paquen Consolidation Working Paper, Date of Acquisition Below are the precombination condensed balance sheets of Princecraft and Sylvan Companies

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8 Partly correct Mark065 of 2.50 Paquen Consolidation Working Paper, Date of Acquisition Below are the precombination condensed balance sheets of Princecraft and Sylvan Companies just prior to Princecrafts acquisition of 90 percent of the the shares of Sylvan for 543 million in cash. The book values of Swan Company's net assets approximate fair value. The noncontrolling interest in Sytuan has a far value of 14.250.000 Princecah Sylvan Company Company Cash 360.000,00 32,000,000 Other current assets 20,000,000 3,000 000 Property and equamente 70.000000 15.000.000 Total assets $150.000.000 525.000.000 Totalbes $3,000,000 58.000.000 Commons 15.000.000 5.000.000 Additional paid in Capital 45.000.000 10.000.000 Reamed a 60.000.000 2.000.000 Toxalatiers deur 5150.000.000 125.000.000 Required a. Calculate total goodwill and its allocation to the controlling and noncontrolling interests Enter answers in thousands. For example, 141.000.000 - 543.000 in thousands Total poodit 0350 Allocation to contingress 27,700 Allocation to oncotroligt 2.550 5 b. Prepare the consolidation working paper at the date of acquisition. Enter answers in thousands ($2,000,000 equals $2,000 (in thousands). Use negative signs with your answers in the "Dr (Cr)" columns to indicate a credit balance, when appropriate Consolidation Working Paper Accounts Taken From Books Consolidated Balances Eliminations Credit Dr (Cr) Debit (in thousands) Princecraft Sylvan Dr (Cr) Dr (Cr) $ 0 X $2,000 0 % 8,000 $ Cash OX Other current assets O x 15,000 Property and equipment, net Investment in Sylvan 0X (E) 07 0X (R) 0 X OX Goodwill Total liabilities OX 0X 0 (R) 0x (8,000) 0x (5,000) (E) 0 X (10,000) (E) 0 X (2.000) (E) Common stock OX Additional paid in capital 0 X OX Retained earnings 0X (E) OX Noncontrolling interest 0 X (R) 5 0 0 X $0 $0 $ Ox $ Total c. Prepare the consolidated balance sheet at the date of acquisition, in good form. Enter answers in thousands ($38,000,000 equals $38,000 (in thousands). Do not use negative signs with any of your answers. Consolidated Balance Sheet Date of Acquisition (in thousands) Assets Cash $ 22,000 x Other current assets 28,000 85,000 Property and equipment, net Goodwill 23,000 X Total assets 158,000 x Liabilities and shareholders' equity Total liabilities $ 38,000 Shareholders' equity Princecraft's shareholders' equity: 15,000 Common stock Additional paid-in capital 45,000 60,000 Retained earnings Total Princecraft's shareholders' equity Noncontrolling interest Total shareholders' equity Total liabilities and shareholders' equity $ 158,000 x Check

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