Consolidation on date of acquisition- Equity method with noncontrolling interest and AAP Assume that a parent company
Question:
Consolidation on date of acquisition- Equity method with noncontrolling interest and AAP
Assume that a parent company acquires an 80% interest in its subsidiary for a purchase price of $2,483,200. The excess of the total fair value of the controlling and noncontrolling interests over the book value of the subsidiary's Stockholders' Equity is assigned to a building (in PPE, net) that the parent believes is worth $200,000 more than its book value, an: unrecorded Patent that the parent valued at $400,000, and Goodwill of $600,000, 80% of which is allocated to the parent. The parent and the subsidiary report the balance sheets on the acquisition date in b. below:
a. Prepare the consolidation entries on the acquisition date.
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Statistics The Exploration & Analysis Of Data
ISBN: 9780840058010
7th Edition
Authors: Roxy Peck, Jay L. Devore