Based on Chapter 5, so NCI and a Differential is involved. Key pages are 184 through 191 . Part 1 must use same general format style as Figure 52 in text, and Part 2 must use same general format as Figure 5-4 in text. Remember additional formatting requirements in syllabus. Part 1 On January 1, 20X2, Portland Corp. bought 80% of the stock of Spokane Corp. for $700,000. The Balance Sheets of the two companies immediately after acquisition (January 1, 20X2) of Spokane Corp. showed the following: On the date of acquisition, the Book Value of Spokane equaled its Fair Market Value (FMV), except for land that had a FMV of $140,000 and the copyrights with a FMV of $60,000. On the date of acquisition, the FMV of previously unrecorded identifiable intangibles (2-year life) of Spokane was $40,000, and the NonControlling Interest (NCI)'s fair value is $175,000. Portland uses the equity method to record its investment in Spokane. Required: A. List all journal entries Portland makes to record its investment in Spokane on the date of acquisition. B. List all Consolidation/Elimination Entries needed in order to prepare a workpaper for the consolidated Balance Sheet of Portland and Spokane immediately after the combination (January 1,2022) C. Prepare a workpaper for the consolidated Balance Sheet of Portland and Spokane immediately after the combination (January 1, 2022). Show all necessary elimination entries in their proper columns (similar to Figure 5-2). Use a letter coding system for each elimination entry. Remember to do the format requirements in the syllabus, such as Dates, Company name (i.e., parent identified), Name of statement, Dollar Signs, Commas, and Underlines. Based on Chapter 5, so NCI and a Differential is involved. Key pages are 184 through 191 . Part 1 must use same general format style as Figure 52 in text, and Part 2 must use same general format as Figure 5-4 in text. Remember additional formatting requirements in syllabus. Part 1 On January 1, 20X2, Portland Corp. bought 80% of the stock of Spokane Corp. for $700,000. The Balance Sheets of the two companies immediately after acquisition (January 1, 20X2) of Spokane Corp. showed the following: On the date of acquisition, the Book Value of Spokane equaled its Fair Market Value (FMV), except for land that had a FMV of $140,000 and the copyrights with a FMV of $60,000. On the date of acquisition, the FMV of previously unrecorded identifiable intangibles (2-year life) of Spokane was $40,000, and the NonControlling Interest (NCI)'s fair value is $175,000. Portland uses the equity method to record its investment in Spokane. Required: A. List all journal entries Portland makes to record its investment in Spokane on the date of acquisition. B. List all Consolidation/Elimination Entries needed in order to prepare a workpaper for the consolidated Balance Sheet of Portland and Spokane immediately after the combination (January 1,2022) C. Prepare a workpaper for the consolidated Balance Sheet of Portland and Spokane immediately after the combination (January 1, 2022). Show all necessary elimination entries in their proper columns (similar to Figure 5-2). Use a letter coding system for each elimination entry. Remember to do the format requirements in the syllabus, such as Dates, Company name (i.e., parent identified), Name of statement, Dollar Signs, Commas, and Underlines
