Bamb-Bamb Incorporated acquired 75 percent of the outstanding common stock of Pebbles Corporation on January 1, 2013. Bamb-Bamb Incorporated paid a total of $835,000 in cash for these shares. The 25 percent noncontrolling interest shares had a total fair value of $255,000 both before and after Bamb-Bamb Incorporated's acquisition. The Book Value of Pebbles Corporation's Net Assets on January 1, 2013 was $465,000, which included the following:

Pebbles Corporations January 1, 2013 Owners Equity

Common Stock($135,000)

Additional Paid In Capital($160,000)

Retained Earnings, January 1, 2013($170,000)

Bamb-Bamb Incorporated uses the Partial Equity method for internal recordkeeping to monitor the activities of Pebbles Corporation. At the acquisition date, the carrying amounts of Pebbles Corporation's assets and liabilities were generally equivalent to the fair value except for the following:

Assets/Liabilities Book Value Fair Value Remaining Useful Life

Equipment(Net) $65,000 $110,000 10 Years

Buildings (Net) $295,000 $500,000 20 Years

Land $100,000 $150,000 N/A

Loan Payable ($250,000) ($300,000) 8 Years

Fiscal Year 2014 Data:

On January 1, 2014 Bamb-Bamb Inc sold Pebbles Corp a Building for $120,000 cash. The Buildings net book value on January 1, 2014 was $80,000 and its originally purchased price was $100,000. The building is expected to be usable for another 16 years. Both Bamb-Bamb and Pebbles use the straight line method for depreciating assets.

Questions 7 - A) Calculate the annual excess amortization using the acquisition date fair value over book value of the identifiable assets and liabilities on the date of acquisition.

ANSWER 7-A:

Annual Ammortization of Excess Fair Value Over Book$8,500.00

Fair Value of Pebbles Identified Net Assets $715,000.00

Question 7 - B)Prepare the consolidated journal entries on December 31, 2015 for the Intra-Entity Building Transfer.

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