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Can you please show steps on how to calculate the Net Value of Assets (ONLY). No need to complete the problem. Thank you! Problem 3-2
Can you please show steps on how to calculate the Net Value of Assets (ONLY). No need to complete the problem. Thank you!
Problem 3-2 (LO 2) Simple equity method adjustments, consolidated worksheet. On January 1, 2015, Paro Company purchases 80% of the common stock of Solar Company for $320,000. Solar has common stock, other paid-in capital in excess of par, and recained earnings of $50,000,$100,000, and $150,000, respecrively. Net income and dividends for two years for Solar are as follows: On January 1, 2015, the only undervalued tangible assets of Solar are inventory and the building. Inventory, for which FIFO is used, is worth $10,000 more than cost. The inventory is sold in 2015 . The building, which is worth $30,000 more than book value, has a remaining life of 10 years, and straight-line depreciation is used. The remaining excess of cost over book value is attributed to goodwill. 1. Using this information and the information in the following trial balances on December 31 , 2016, prepare a value analysis and a determination and distribution of excess schedule: Complete a worksheet for consolidared financial starements for 2016 . Include columns for eliminations and adjustments, consolidated income, NCI, controlling retained earnings, and consolidated balance sheetStep by Step Solution
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