ALL OF THE INFORMATION IS THERE THAT NEEDS TO COMPLETE THE QUESTION
QUESTION 2 Not complete Marked out of 235.00 P Flag question Consolidation subsequent to date of acquisition - Equity method with noncontrolling interest and AAP Assume that, on January 1, 2009, a parent company acquired an 80% interest in its subsidiary. The total fair value of the controlling and noncontrolling interests was $500,000 over the book value of the subsidiary's Stockholders' Equity on the acquisition date. The parent assigned the excess to the following [A] assets: A] Asset Initial Fair Value Useful Life (years) Initial Useful Fair Value Life (years) 10 10 A] Asset Property, plant and equipment (PPE), net 90,000 Customer list Goodwil 160,000 50,000 Indefinite 500,000 80% of the Goodwill is allocated to the parent. The parent and the subsidiary report the following financial statements at December 31, 2013 Parent Subsidiary Parent Subsidiary Income statement: Sales Cost of goods sold Gross profit Income (loss) from subsidiary Operating expenses Balance sheet: $7,330,000 $1,873,000 Assets (5,131,000) 1,122,300) Cash $413,313 $134,011 938,240 433,956 1,422,020 557,409 2,199,000 750,700 Accounts receivable 191,496 Inventory (1,392,700) 486,330 Equity investment 1,477,671 Net income $997,796 264,370 Property, plant and equipment (PPE), net 5,374,356 1,280,669 $9,625,600 $2,406,045 Statement of retained earnings: BOY retained earnings Net income Dividends $3,682,592 $966,425 Liabilities and stockholders' equity $1,053,321 $433,956 2,000,000 500,000 1,198,455 124,700 892,595 55,875 4,481,229 ,191,514 $9,625,600 $2,406,045 997,796 264,370 Current liabilities 199,159 )Long-term liabilities EOY retained earnings $4,481,229 $1,191,514 Common stock APIC Retained earnings QUESTION 2 Not complete Marked out of 235.00 P Flag question Consolidation subsequent to date of acquisition - Equity method with noncontrolling interest and AAP Assume that, on January 1, 2009, a parent company acquired an 80% interest in its subsidiary. The total fair value of the controlling and noncontrolling interests was $500,000 over the book value of the subsidiary's Stockholders' Equity on the acquisition date. The parent assigned the excess to the following [A] assets: A] Asset Initial Fair Value Useful Life (years) Initial Useful Fair Value Life (years) 10 10 A] Asset Property, plant and equipment (PPE), net 90,000 Customer list Goodwil 160,000 50,000 Indefinite 500,000 80% of the Goodwill is allocated to the parent. The parent and the subsidiary report the following financial statements at December 31, 2013 Parent Subsidiary Parent Subsidiary Income statement: Sales Cost of goods sold Gross profit Income (loss) from subsidiary Operating expenses Balance sheet: $7,330,000 $1,873,000 Assets (5,131,000) 1,122,300) Cash $413,313 $134,011 938,240 433,956 1,422,020 557,409 2,199,000 750,700 Accounts receivable 191,496 Inventory (1,392,700) 486,330 Equity investment 1,477,671 Net income $997,796 264,370 Property, plant and equipment (PPE), net 5,374,356 1,280,669 $9,625,600 $2,406,045 Statement of retained earnings: BOY retained earnings Net income Dividends $3,682,592 $966,425 Liabilities and stockholders' equity $1,053,321 $433,956 2,000,000 500,000 1,198,455 124,700 892,595 55,875 4,481,229 ,191,514 $9,625,600 $2,406,045 997,796 264,370 Current liabilities 199,159 )Long-term liabilities EOY retained earnings $4,481,229 $1,191,514 Common stock APIC Retained earnings
