Question
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.
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