Consolidation at Date Subsequent to Acquisition, Ownership BV. Assume that on 1/1/xx, a parent company acquired 90% interest in a subsidiary. The total fair value
Consolidation at Date Subsequent to Acquisition, Ownership BV.
Assume that on 1/1/xx, a parent company acquired 90% interest in a subsidiary. The total fair value of the controlling and noncontrolling interests was $480,000 over book value. The parent assigned the excess to: PPE with a fair value of $160,000 and useful life of 20 years, Patent with a fair value of $80,000 and useful life of 10 years, Customer list with a fair value of $40,000 and useful life of 10 years, and Goodwill with a fair value of 200,000.
90% of the Goodwill is assigned to the Parent.
- Prepare the consolidated financial statements at 12/31/xx by placing the appropriate entries in their respective debit/credit column cells.
- Indicate, in the blank column cell to the left of the debit and credit column cells if the entry is a [C], [E], [A]or [D] entry.
ACT470 Module 03 Option 02 (1) Q Search Sheet View +Share Home Insert Draw Page Layout Formulas Data Review AutoSum Cut Calibri (Body) 11 A A Wrap Text General 7Y Copy Fill A T Conditional Format Formattirg as Table Sty es Insert Marge & Conter Paste Cell De ete Format Sort & rind & 0 Farmat Clear Filter Sclect fx ACT470-Module 3-Option 2 A1 o P A C D E F G H L M N R S 1ACT470-Module 3-Option 2 Cansolidation Entries 7 3 Subsidiary Parent Dr Cr Consolidated 4 IncomeSatemen 5Sales 6,800,000 sa0,000 C 6 Cost of Goucs sold 7 Grossprafit Incomelloss) from subsidiary 9 Cperaingxpenses 10 Net Income 11 Cansalidated NI witrib to NC 12 Consalidated NI antrib to C 5,200,000 1,600,000 528,000 C 352,000 82,800 C 240,000 1,280,000) 402.800 C 112,000 13 14 St:tement cf Ret Earnings: BOY retsined earnirgs 16 Net income 580,000 468,000 402,800 112,000 C 16,000 564.000 17 Dividends (160,000) 822.800 EOY retainedernings 19 20 BalanceSheen 21 Cash 320,000 228,00 22 Accounsreteivable 23 Irentary 24 Equity investment C 480,000 200,000 720,000 264,000 982,800 25 26 27 PPE, net 28 Patent 29 Custamer Lis 30 Goodwill 1,600,000 G00,00 C C C 31 4,102,800 1,292,000 C 32 33 Current libilities 720,000 200,000 34 Lang tarm llabilities. 35 Common stock 36 APIC 1,600,00 400,000 C 320,000 56,000 C 640,000 72000 C 37 Retainod earnings 38 Noncontrolling interest 822,20n 564.00 39 AC 41 4,102,800 1,292,000 42 43 A4 Sheet1 + E - - +100% ACT470 Module 03 Option 02 (1) Q Search Sheet View +Share Home Insert Draw Page Layout Formulas Data Review AutoSum Cut Calibri (Body) 11 A A Wrap Text General 7Y Copy Fill A T Conditional Format Formattirg as Table Sty es Insert Marge & Conter Paste Cell De ete Format Sort & rind & 0 Farmat Clear Filter Sclect fx ACT470-Module 3-Option 2 A1 o P A C D E F G H L M N R S 1ACT470-Module 3-Option 2 Cansolidation Entries 7 3 Subsidiary Parent Dr Cr Consolidated 4 IncomeSatemen 5Sales 6,800,000 sa0,000 C 6 Cost of Goucs sold 7 Grossprafit Incomelloss) from subsidiary 9 Cperaingxpenses 10 Net Income 11 Cansalidated NI witrib to NC 12 Consalidated NI antrib to C 5,200,000 1,600,000 528,000 C 352,000 82,800 C 240,000 1,280,000) 402.800 C 112,000 13 14 St:tement cf Ret Earnings: BOY retsined earnirgs 16 Net income 580,000 468,000 402,800 112,000 C 16,000 564.000 17 Dividends (160,000) 822.800 EOY retainedernings 19 20 BalanceSheen 21 Cash 320,000 228,00 22 Accounsreteivable 23 Irentary 24 Equity investment C 480,000 200,000 720,000 264,000 982,800 25 26 27 PPE, net 28 Patent 29 Custamer Lis 30 Goodwill 1,600,000 G00,00 C C C 31 4,102,800 1,292,000 C 32 33 Current libilities 720,000 200,000 34 Lang tarm llabilities. 35 Common stock 36 APIC 1,600,00 400,000 C 320,000 56,000 C 640,000 72000 C 37 Retainod earnings 38 Noncontrolling interest 822,20n 564.00 39 AC 41 4,102,800 1,292,000 42 43 A4 Sheet1 + E - - +100%
