Data:

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

Goodwill with a fair value of 200,000.

90% of the Goodwill is assigned to the Parent.

Submission Requirements: Using an Excel spreadsheet:

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.

Use Excel formulas to derive the Consolidated column amounts and totals.

Using the Home key in Excel, go to the Styles area and highlight the [C], [E], [A], and [D] entry cells in different shades.