answer only if you know how to do this problem ... thank u
Plaza, Inc., acquires 80 percent of the outstanding common stock of Stanford Corporation on January 1, 2018, in exchange for $1,080,000 cash. At the acquisition date, Stanford's total fair value, including the noncontrolling interest, was assessed at $1,350,000. Also at the acquisition date, Stanford's book value was $555,700. Several individual items on Stanford's financial records had fair values that differed from their book values as follows: Book Value $ 292,900 Fair Value $ 459,600 Tradenames (indefinite life) Property and equipment (net, 8-year remaining life) Patent (14-year remaining life) 231,200 147,800 252,800 182,800 For internal reporting purposes, Plaza, Inc., employs the equity method to account for this investment. The following account balances are for the year ending December 31, 2018, for both companies For internal reporting purposes, Plaza, Inc., employs the equity method to account for this investment. The following account balances are for the year ending December 31, 2018, for both companies. Revenues Cost of goods sold Depreciation expense Amortization expense Equity in income of Stanford Net income Plaza $ (940, 800) 520, 100 220,500 Stanford $ (727,100) 322, 200 28,900 32,800 0 $ (343,200) (270, 400) $ (470,600) Retained earnings, 1/1/18 Net income Dividends declared Retained earnings, 12/31/18 $(1,038,000) (470,600) 244,300 $(1,264,300) $ (431, 200) (343,200) 27,000 $ (747, 400) $ Current assets Investment in Stanford Tradenames Property and equipment (net) Patents Total assets 700,200 1,328,800 195,400 838,600 0 $ 3,063,000 $ 351,700 0 292,900 202,300 115,000 $ 961,9001 $ Accounts payable Common stock Additional paid-in capital Retained earnings (above) Total liabilities and equities (115,700) (244,400) (1,438,600) (1,264,300) $ (3,063,000) $ (90,000) (80,000) (44,500) (747, 400) $ (961,900) A. Accounts Consolidated Totals Revenues Cost of goods sold Depreciation expense Amortization expense Equity in income of Stanford Net income Consolidated net income NCI share of CNI Plaza share of CNI PLAZA CORPORATION AND STANFORD CORPORATION Consolidation Worksheet For Year Ending December 31, 2018 Consolidation Entries Noncontrolling Plaza Stanford Debit Credit Interest $ (940,800) (727,100) 520,100 322,200 220,500 28,900 0 32,800 (270,400) 0 $ (470,600) $ (343,200) 0 $ o Retained earnings, 1/1 Net income Dividends declared Retained earnings, 12/31 $ (1,038,000) (470,600) 244,300 $ (1,264,300) $ (431,200) (343,200) 27,000 $ (747,400) $ 0 0 32,800 (270,400) $ (470,600) $ (343,200) 0 0 $ 0 0 Amortization expense Equity in income of Stanford Net income Consolidated net income NCI share of CNI Plaza share of CNI Retained earnings, 1/1 Net income Dividends declared Retained earnings, 12/31 Current assets Investment in Stanford Tradenames Property and equipment (net) Patents Goodwill Total assets Accounts payable Common stock Additional paid-in capital Noncontrolling interest Retained earnings, 12/31 Total liabilities and equities $ (1,038,000) $ (431,200) (470,600) (343,200) 244,300 27,000 $ (1,264,300) $ (747,400) $ 700,200 $ 351,700 1,328,800 0 195,400 292,900 838,600 202,300 0 115,000 $ 0 $ 3,063,000 $ (115,700) (244,400) (1,438,600) 961,900 (90,000) (80,000) (44,500) (1,264,300) $ (3.063,000) (747,400) $ (961,900) $ 0 $ 0 $
