Question
Can someone please help with this? On January 1, 2016, Alpha acquired 80 percent of Delta. Of Delta's total business fair value, $193,000 was allocated
Can someone please help with this?
On January 1, 2016, Alpha acquired 80 percent of Delta. Of Delta's total business fair value, $193,000 was allocated to copyrights with a 20-year remaining life. Subsequently, on January 1, 2017, Delta obtained 70 percent of Omega's outstanding voting shares. In this second acquisition, $149,400 of Omega's total business fair value was assigned to copyrights that had a remaining life of 12 years. Delta's book value was $540,000 on January 1, 2016 and Omega reported a book value of $172,500 on January 1, 2017.
Delta has made numerous inventory transfers to Alpha since the business combination was formed. Intra-entity gross profits of $16,200 were present in Alpha's inventory as of January 1, 2018. During the year, $294,000 in additional intra-entity sales were made with $32,340 in Intra-entity gross profits in inventory remaining at the end of the period.
Both Alpha and Delta utilized the partial equity method to account for their investment balances.
Following are the individual financial statements for the companies for 2018 with consolidated totals
Develop the worksheet entries necessary to derive these reported balances
Thank you
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