Comprehensive Consolidated Working Paper, Consolidated Financial Statements Several years ago PK Flyers acquired 65 percent of the voting stock of ShoeDaze for a total acquisition cost of $38,700,000. At the time of acquisition, the fair value of the noncontrolling interest was $17,300,000 and the book value of ShoeDaze was $10 million. The $46 million excess of company fair value over book value was attributed entirely to goodwill. PK uses the complete equity method to report its investment in ShoeDaze on its own books. It is now January 31, 2024, the fiscal year-end. The following information is available: - Goodwill impairment as of beginning of fiscal 2024 is $2 million. Goodwill impairment for fiscal 2024 is $300,000. - ShoeDaze regularly sells merchandise to PK. Unconfirmed intercompany profit in PK's inventory at the beginning of fiscal 2024 is $600,000. Unconfirmed intercompany profit in PK's inventory at the end of fiscal 2024 is $500,000. Total sales of merchandise from ShoeDaze to PK during fiscal 2024 are priced by ShoeDaze at $30 million. - PK sold land it carried at $1 million to ShoeDaze at the beginning of fiscal 2020 for $2,500,000. ShoeDaze still carries the land on its books. - PK sold equipment it carried at a net book value of $7 million to ShoeDaze at the beginning of fiscal 2022 for $9 million. ShoeDaze still carries the equipment on its books. The equipment had a 5 -year life, straight-line, as of the date it was sold to ShoeDaze. Below are the trial balances of PK and ShoeDaze at January 31, 2024. Required a. Determine the percentage allocation of goodwill between PK and the noncontrolling interest in ShoeDaze. - Enter your answers in thousands ($38,700,000 equals $38,700 in thousands). - Enter your ratio answers in percentages. b. Prepare a schedule calculating fiscal 2024 equity in net income of ShoeDaze ($1,555,000) and noncontrolling interest in net income of ShoeDaze. - Enter your answers in thousands (\$1,555,000 equals $1,555 in thousands). - Use negative signs with answers that reduce net income amounts. c. Prepare a schedule calculating the January 31, 2024, balance for Investment in ShoeDaze ($40,315,000), appearing on PK's books. - Enter answers in thousands (\$40,315,000 equals $40,315 in thousands). - Use negative signs with answers that reduce the investment balance. Comprehensive Consolidated Working Paper, Consolidated Financial Statements Several years ago PK Flyers acquired 65 percent of the voting stock of ShoeDaze for a total acquisition cost of $38,700,000. At the time of acquisition, the fair value of the noncontrolling interest was $17,300,000 and the book value of ShoeDaze was $10 million. The $46 million excess of company fair value over book value was attributed entirely to goodwill. PK uses the complete equity method to report its investment in ShoeDaze on its own books. It is now January 31, 2024, the fiscal year-end. The following information is available: - Goodwill impairment as of beginning of fiscal 2024 is $2 million. Goodwill impairment for fiscal 2024 is $300,000. - ShoeDaze regularly sells merchandise to PK. Unconfirmed intercompany profit in PK's inventory at the beginning of fiscal 2024 is $600,000. Unconfirmed intercompany profit in PK's inventory at the end of fiscal 2024 is $500,000. Total sales of merchandise from ShoeDaze to PK during fiscal 2024 are priced by ShoeDaze at $30 million. - PK sold land it carried at $1 million to ShoeDaze at the beginning of fiscal 2020 for $2,500,000. ShoeDaze still carries the land on its books. - PK sold equipment it carried at a net book value of $7 million to ShoeDaze at the beginning of fiscal 2022 for $9 million. ShoeDaze still carries the equipment on its books. The equipment had a 5 -year life, straight-line, as of the date it was sold to ShoeDaze. Below are the trial balances of PK and ShoeDaze at January 31, 2024. Required a. Determine the percentage allocation of goodwill between PK and the noncontrolling interest in ShoeDaze. - Enter your answers in thousands ($38,700,000 equals $38,700 in thousands). - Enter your ratio answers in percentages. b. Prepare a schedule calculating fiscal 2024 equity in net income of ShoeDaze ($1,555,000) and noncontrolling interest in net income of ShoeDaze. - Enter your answers in thousands (\$1,555,000 equals $1,555 in thousands). - Use negative signs with answers that reduce net income amounts. c. Prepare a schedule calculating the January 31, 2024, balance for Investment in ShoeDaze ($40,315,000), appearing on PK's books. - Enter answers in thousands (\$40,315,000 equals $40,315 in thousands). - Use negative signs with answers that reduce the investment balance
