Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Date of Acquisition Consolidation Eliminating Entries Pennant Corporation acquired 80 percent of Saylor Company's common stock for $6,000,000 in cash on January 2, 2013. At

Date of Acquisition Consolidation Eliminating Entries

Pennant Corporation acquired 80 percent of Saylor Company's common stock for $6,000,000 in cash on January 2, 2013. At that date, Saylor's $3,600,000 of reported net assets were fairly stated, except land was undervalued by $300,000 and unrecorded developed technology was valued at $600,000. The estimated fair value of the noncontrolling interest is $1,200,000 at the acquisition date. (a) Calculate total goodwill and its allocation to the controlling and noncontrolling interests.

Enter answers using all zeros (do not abbreviate to in thousands or in millions).

Allocation of goodwill between controlling and noncontrolling interest:
Total goodwill Answer
Pennant's goodwill Answer
Goodwill to noncontrolling interest Answer

(b) Prepare the working paper eliminating entries needed to consolidate Pennant and Saylor on January 2, 2013.

Enter answers using all zeros (do not abbreviate to in thousands or in millions).

ConsolidationJournal
Description Debit Credit
(E)
AnswerCashShareholders' equity - SaylorInvestment in Saylor Answer Answer
AnswerInvestment in SaylorCashShareholders' equity - Saylor Answer Answer
Noncontrolling interest in Saylor Answer Answer
(R)
AnswerLandInvestment in SaylorCash Answer Answer
Developed technology Answer Answer
Goodwill Answer Answer
AnswerInvestment in SaylorLandCash Answer Answer
Noncontrolling interest in Saylor Answer Answer

Please answer all parts of the question.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Environmental Audit And Business Strategy Financial Times

Authors: Grant Ledgerwood

1st Edition

0273038508, 978-0273038504

More Books

Students also viewed these Accounting questions

Question

Discuss examples of ethical issues you've notice at your workplace

Answered: 1 week ago

Question

3. Evaluate your listeners and tailor your speech to them

Answered: 1 week ago