common stock on January 1, 2018, for $512,000 cash. The stockholders equity of Sam on this date consisted of $450,000 capital stock and $100,000 retained earnings. The differences between the fair value of Sam and the book value of Sam were assigned $5,000 to Sams undervalued inventory, $10,000 to overvalued buildings, $21,000 to overvalued equipment, and $30,000 to previously unrecorded patents. Any remaining excess is goodwill. The overvalued inventory items were sold during 2018, and the undervalued buildings and equipment had remaining useful lives of seven years and three years, respectively. The patents have a 20-year life. Depreciation is straight line.

At December 31, 2018 Sams accounts payable include $15,000 owed to Bassam Company.

Sam Company announced and paid $150,000 of dividends during year 2018.

Separate financial statements for Bassam and Sami for 2018 are summarized as follows:

Separate Income Statements for year 2018

Sales

Cost of Goods Sold Depreciation Expense

Other Expenses Income from Sam Net Income

Bassam

$1,100,000 (660,000)

(110,000)

(40,000) ?

?

Sam

$800,000 (420,000)

(80,000)

(50,000) - 250,000

Separate Statement of Financial Position as of 31/12/2018

Assets

Cash

Accounts Receivable

Building

Equipment

Land

Investment in Saint Sam

Total Assets

Liabilities and owners' Equity

Accounts payable

Capital stock

Retained earnings

Total Liabilities and owners' Equity

Instructions :

Bassam

$ 175,000 200,000 500,000 200,000 210,000

?

?

$350,000 1,000,000 ?

?

Sam

$50,000 120,000 250,000 150,000 180,000 -

750,000

$100,000 450,000 200,000 750,000

1- Prepare the consolidated Income Statement for year 2018

2- Prepare the Consolidated Statement of Financial Position as of 31/12/2018.

3- Prepare 2 T-Accounts for Investment in Sam, and Income from Sam as

appear in the records of Bassam Company in year 2018.

4- Show the calculations for Non-Controlling Interest balance that appears on

the Statement of Financial Position as of 31/12/2018, and the Non- Controlling Interest Share in Income that appears in the Income Statement

.nl 4G D 2:48 X Assignment 3 2 PDF - 125 KB Assignment 3: Advanced Accounting Bassam Company acquired a 80 percent interest in Sam Corporation's outstanding common stock on January 1, 2018, for $512,000 cash. The stockholders' equity of Sam on this date consisted of $450,000 capital stock and S100,000 retained earings. The differences between the fair value of Sam and the book value of Sam were assigned $5,000 to Sam's undervalued inventory, $10,000 to overvalued buildings. $21,000 to overvalued equipment, and $30,000 to previously unrecorded patents. Any remaining excess is goodwill. The overvalued inventory items were sold during 2018, and the undervalued buildings and equipment had remaining useful lives of seven years and three years, respectively. The patents have a 20-year life, Depreciation is straight line. At December 31, 2018 Sam's accounts payable include $15,000 owed to Bassam Company Sam Company announced and paid $150,000 of dividends during year 2018 Separate financial statements for Bassam and Sami for 2018 are summarized as follows: Separate Income Statements for year 2018 Bassam Sam SI,100,000 $800,000 (660,000) (420,000) Sales Cost of Goods Sold Depreciation Expense Other Expenses Income from Sam Net Income (110,000) (80,000) (40,000) 2 (50,000) 250,000 In Nel com Separate Statement of Financial Position as of 31/12/2018 Cash $ 175.000 Accounts Receivable 200.000 Building 500.000 Equipment 200,000 Land 210.000 Investment in Saint Sam Total Assets 2 S50.000 120.000 250 000 150,000 10,000 750,000 Lisand Accounts payable Capital stock Keaned coming Total Lilies and $350.000 1.000.000 7 S100.000 450.000 200.000 750,000 Instructions 1- Prepare the consolidated Income Statement for year 2018 2. Prepare the Consolidated Statement of Financial Positions of 31/12/2017 - Prepare 2 T. Accounts for investment in Sum, and income from Samas appear in the records of Bascam Company in year 2018 Show the calculations for Non-Controlling Interest balance that appearson the Statement of Financial Position of 31/12/2015, and the Non Casting Interest Share in toome that appears in the Income Statement for 2011