aza, Inc., acquires 80 percent of the outstanding common stock of Stanford Corporation on January 1, 2018, in exchange for 960,400 cash. At the acquisition date, Stanford's total fair value, including the noncontrolling Interest, was assessed at $1200,500. also at the acquisition date, Stanford's book value was $511,000. several individual items on Stanford's financial records had fair values that differed from their book values as follows: Book Value $ 267,600 Fair Value $ 391,500 Tradenones (indefinite life) Property and equipment (net, 8-year remaining life) Patent (14-year remaining life) 212,000 233,600 For internal reporting purposes, Plaza, Inc., employs the equity method to account for this investment. The following account balance are for the year ending December 31, 2018, for both companies plata Stanford $ (653.600) 294,500 26,500 481,400 204,100 Cost of goods sold Depreciation expense Amortization expense Equity in Income of Stanford 244.300) (430,100) tince $ (311,700) ( 8,700) (41.109) 5 (393,900) 11,00 Retained earnings, 1/1/18 Net Income Dividends declared Retained earnings, 12/31/18 (1,155,500) $ (678,60 32 in Santome Current stets Investment in Stanford Tradenames Property and equipment (net) 639,9005 1,183,600 178,600 266,500 26 Total assets accounts payable Additional paid in capital Retained earnings (above) Total Habilities and ulties $2,750.600) At year-end, there were no intra entity receivables or payables. bo & 26 CR393xx Tu - S u n wU15 EAPER WA Study Palk Practice Debit Credit Interest Totale $ Plaza $ (870,800) 481.400 204,100 0 (244, 800) $ (430,100) Stanford (653,600) 294,500 26,500 20.900 $ (311,700) S (948,700) (430,100) 23 300 2 Accounts Revenues Cost of goods sold Depreciation expense Amortization expense Equity in income of Stanford Neme 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 wings 12/31 Totals and equites $ $ $ 1.155 500) 5 639.900 1.163.600 178,600 766.500 (393,900) (311,700) 27,000 (678.600) 321300 0 267 500 185.500 106 300 $ S $ 2.768,600 (105.700) (223.300) (1.254.100) 880,700 (85.000) (82.000) (35100) | 1.155500) 67860011 5680.700) 5 0 aza, Inc., acquires 80 percent of the outstanding common stock of Stanford Corporation on January 1, 2018, in exchange for 960,400 cash. At the acquisition date, Stanford's total fair value, including the noncontrolling Interest, was assessed at $1200,500. also at the acquisition date, Stanford's book value was $511,000. several individual items on Stanford's financial records had fair values that differed from their book values as follows: Book Value $ 267,600 Fair Value $ 391,500 Tradenones (indefinite life) Property and equipment (net, 8-year remaining life) Patent (14-year remaining life) 212,000 233,600 For internal reporting purposes, Plaza, Inc., employs the equity method to account for this investment. The following account balance are for the year ending December 31, 2018, for both companies plata Stanford $ (653.600) 294,500 26,500 481,400 204,100 Cost of goods sold Depreciation expense Amortization expense Equity in Income of Stanford 244.300) (430,100) tince $ (311,700) ( 8,700) (41.109) 5 (393,900) 11,00 Retained earnings, 1/1/18 Net Income Dividends declared Retained earnings, 12/31/18 (1,155,500) $ (678,60 32 in Santome Current stets Investment in Stanford Tradenames Property and equipment (net) 639,9005 1,183,600 178,600 266,500 26 Total assets accounts payable Additional paid in capital Retained earnings (above) Total Habilities and ulties $2,750.600) At year-end, there were no intra entity receivables or payables. bo & 26 CR393xx Tu - S u n wU15 EAPER WA Study Palk Practice Debit Credit Interest Totale $ Plaza $ (870,800) 481.400 204,100 0 (244, 800) $ (430,100) Stanford (653,600) 294,500 26,500 20.900 $ (311,700) S (948,700) (430,100) 23 300 2 Accounts Revenues Cost of goods sold Depreciation expense Amortization expense Equity in income of Stanford Neme 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 wings 12/31 Totals and equites $ $ $ 1.155 500) 5 639.900 1.163.600 178,600 766.500 (393,900) (311,700) 27,000 (678.600) 321300 0 267 500 185.500 106 300 $ S $ 2.768,600 (105.700) (223.300) (1.254.100) 880,700 (85.000) (82.000) (35100) | 1.155500) 67860011 5680.700) 5 0