Acquisition Accounting Implied Value exceeds Book Value 80% Owned Subsidiary Date of Acquisition ILLUSTRATION 3-4 Consolidated Balance Sheet Workpaper P Company and Subsidiary January 1, 2013 Eliminations P Company S Company Dr. Cr Noncontrolling Consolidated Interest Cash Other Current Assets 26,000 20,000 140,000 50,000 Plant and Equipment 120,000 40,000 Land 40,000 20,000 (2) 12,500 Balances 46,000 190,000 160,000 72,500 Investment in S Company 74,000 (1) 74,000 Difference between implied (1) 12,500 (2) 12,500 and book value Total Assets $400,000 $130,000 $468,500 Liabilities 60,000 50,000 110,000 Common Stock P Company 200,000 200,000 S Company 50,000 (1) 50,000 Other Contributed Capital P Company 40,000 40,000 S Company 10,000 (1) 10,000 Retained Earnings P Company 100,000 100,000 S Company 20,000 (1) 20,000 Noncontrolling Interest (1) 18,500 18,500 18,500 Total Liabilities and Equity $400,000 $130,000 $105,000 $105,000 $468,500 (1) To eliminate investment in S Company and create noncontrolling interest account. (2) To distribute the difference between implied and book value. - The soft Copy AN THE New C300 med Value of Subsidiary Book Value (VBV-Partial Ownership diery Stock Acquir 100% of 130 1. The p Th Th