calculation for excess, amortization for excess, t accounts for upstream and downstream

Format K48 fx C D G A H Financial statements for lack and kill Corporations for 2011 are as follows (in thousands): Jack NE Combined Income and Retained Earnings Statement 7 for the Year Ended December 31, 2011 8 9 Sales $210.0 $130,0 10 Income from Jill 34.4 0.0 11 Gain on sale of land 0.0 10.0 12 Depreciation expenses (40.01 (30.0) 13 Other expenses (110,0) (60.0) 14 Net Income 94.4 50.0 15 Add: Beginning retained earnings 145 4 50.0 16 Deduct: Dividends (30,0) 00 17 Retained earnings December 31 209.8 100.0 18 19 Balance Sheet at December 31, 2011 20 Current assets $200 $170 21 Plant assets 550 350 22 23 24 lack 25 26 Accumulated Depreciation (120,0) 70,0) 27 Investment in 329.8 00 28 Total assets 959.8 450.0 29 Current liabilities 150.0 50.0 30 Capital stock 600.0 300.0 31 Retained earnings 2098 100.0 32 Total equities 959.8 450.0 33 34 35 Additional Information 36 37 1. lack acquired an 80% interest in illon lanuary 1, 2009, for $290,000, when it's stockholders' equity consisted of $300,000 38 capital stock and no retained earnings. The excess of investment fair value over book value of the net assets acquired related 39 half to undervalued inventories (subsequently sold in 2009) and half to goodwill 40 41 2. il sold equipment to Jack for $25,000 on January 1, 2010, when the equipment had a book value of $10,000 and a five-year 42 remaining useful life (induded in plant assets) 43 44. 1. During 2011, il sold land to lack at a profit of $10,000 (included in plant assets). 45 46 4. lack uses the equity method to account for its invesment in Jill 47 4 REQUIRED || Sheet1 + Ready 30 Capital stock 31 Retained earnings 32 Total equities 33 34 35 Additional Information 36 37 1. Jack acquired an 80% interest in Jill on January 1, 2009, for $ 38 capital stock and no retained earnings. The excess of investme 39 half to undervalued inventories (subsequently sold in 2009) and 40 41 2. Jill sold equipment to Jack for $25,000 on January 1, 2010, w 42 remaining useful life (included in plant assets). 43 44 3. During 2011, Jill sold land to Jack at a profit of $10,000 (incl 45 46 4. Jack uses the equity method to account for its invesment in 47 48 (REQUIRED 49 50 1. Please provide the supporting calculation for the excess, 51 2. Please show the allocation and amortization of the excess 52 3. Show supporting calculation of how you got your numbers 53 4. Show four T Accounts for the Upstream transaction as done ir 54 S. Show four T Accounts for the Downstream transaction as done 55 56 Format K48 fx C D G A H Financial statements for lack and kill Corporations for 2011 are as follows (in thousands): Jack NE Combined Income and Retained Earnings Statement 7 for the Year Ended December 31, 2011 8 9 Sales $210.0 $130,0 10 Income from Jill 34.4 0.0 11 Gain on sale of land 0.0 10.0 12 Depreciation expenses (40.01 (30.0) 13 Other expenses (110,0) (60.0) 14 Net Income 94.4 50.0 15 Add: Beginning retained earnings 145 4 50.0 16 Deduct: Dividends (30,0) 00 17 Retained earnings December 31 209.8 100.0 18 19 Balance Sheet at December 31, 2011 20 Current assets $200 $170 21 Plant assets 550 350 22 23 24 lack 25 26 Accumulated Depreciation (120,0) 70,0) 27 Investment in 329.8 00 28 Total assets 959.8 450.0 29 Current liabilities 150.0 50.0 30 Capital stock 600.0 300.0 31 Retained earnings 2098 100.0 32 Total equities 959.8 450.0 33 34 35 Additional Information 36 37 1. lack acquired an 80% interest in illon lanuary 1, 2009, for $290,000, when it's stockholders' equity consisted of $300,000 38 capital stock and no retained earnings. The excess of investment fair value over book value of the net assets acquired related 39 half to undervalued inventories (subsequently sold in 2009) and half to goodwill 40 41 2. il sold equipment to Jack for $25,000 on January 1, 2010, when the equipment had a book value of $10,000 and a five-year 42 remaining useful life (induded in plant assets) 43 44. 1. During 2011, il sold land to lack at a profit of $10,000 (included in plant assets). 45 46 4. lack uses the equity method to account for its invesment in Jill 47 4 REQUIRED || Sheet1 + Ready 30 Capital stock 31 Retained earnings 32 Total equities 33 34 35 Additional Information 36 37 1. Jack acquired an 80% interest in Jill on January 1, 2009, for $ 38 capital stock and no retained earnings. The excess of investme 39 half to undervalued inventories (subsequently sold in 2009) and 40 41 2. Jill sold equipment to Jack for $25,000 on January 1, 2010, w 42 remaining useful life (included in plant assets). 43 44 3. During 2011, Jill sold land to Jack at a profit of $10,000 (incl 45 46 4. Jack uses the equity method to account for its invesment in 47 48 (REQUIRED 49 50 1. Please provide the supporting calculation for the excess, 51 2. Please show the allocation and amortization of the excess 52 3. Show supporting calculation of how you got your numbers 53 4. Show four T Accounts for the Upstream transaction as done ir 54 S. Show four T Accounts for the Downstream transaction as done 55 56