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Additional Information The notes payable are intercompany. Required: a ) Prepare the Year 6 consolidated financial statements. ( Input all values as positive numbers. Leave
Additional Information
The notes payable are intercompany.
Required:
a Prepare the Year consolidated financial statements. Input all values as positive numbers. Leave no cells blank be certaln to
enter wherever required. Round your Intermedlate computations to nearest whole dollar value. Omit $ sign in your response.
The balance sheet total may vary due to rounding.b Calculate goodwill impairment loss and noncontrolling interest on the consolidated income statement for the year ended December Year under the identifiable net assets method. Round Intermedlate calculations and final answers to whol number. Omit $ sign In your response.
Goodwill irpairnent loss
$
NCI identifiable net assets nethodOSullivan Corp. purchased of the outstanding shares of Rabb Ltd on January Year at a cost of $ Noncontrolling interest was valued at $ by an independent business valuator at the date of acquisition. On that date, Rabb had common shares of $ and retained earnings of $ Fair values were equal to carrying amounts for all the net assets except the following:
Carrying Amount Fair Value
Inventory $ $
Equipment
Software
The equipment had an estimated remaining useful life of six years on January Year and the software was to be amortized over ten years. Foxx uses the cost method to account for its investment. The testing for impairment at December Year yielded the following fair values:
Software $
Goodwill
The impairment loss on these assets occurred entirely in Year Amortization expense is grouped with administrative expenses, and impairment losses are grouped with miscellaneous expenses. The parents share of the goodwill noted above is $
The following are the financial statements of OSullivan Corp. and its subsidiary Rabb Ltd for Year :
BALANCE SHEETS
At December Year
OSullivan Corp. Rabb Ltd
Cash $ $
Accounts receivable
Note receivable
Inventory
Equipment, net
Land
Investment in Rabb
$ $
Bank indebtedness $ $
Accounts payable
Notes payable
Common shares
Retained earnings
$ $
STATEMENTS OF RETAINED EARNINGS
Year ended December Year
OSullivan Corp. Rabb Ltd
Retained earnings, January Year $ $
Net income
Dividends
Retained earnings, December Year $ $
INCOME STATEMENTS
For the year ended December Year
OSullivan Corp. Rabb Ltd
Sales $ $
Investment income
Cost of sales
Administrative expenses
Miscellaneous expenses
Income taxes
Net income $ $
Additional Information
The notes payable are intercompany.
Required:
a Prepare the Year consolidated financial statements. Input all values as positive numbers. Leave no cells blank be certain to enter wherever required. Round your intermediate computations to nearest whole dollar value. Omit $ sign in your response. The balance sheet total may vary due to rounding.
OSullivan Corp.
Statement of Consolidated Retained Earnings
Year ended December Year
Click to select Balance January Balance December $
Click to select Net loss Net income
Click to select Less: Dividends Add: Dividends
Click to select Balance January Balance December $
b Calculate goodwill impairment loss and noncontrolling interest on the consolidated income statement for the year ended December Year under the identifiable net assets method. Round intermediate calculations and final answers to whole number. Omit $ sign in your response.
Goodwill impairment loss $
NCI identifiable net assets method
c This part of the question is not part of your Connect assignment.
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