Download and save images to view them.

Consolidation subsequent to date of acquisition - Equity method with noncontrolling interest and AAP Assume that, on January 1, 2009, a parent company acquired an 80% interest in its subsidiary. The total fair value of the controlling and noncontrolling interests was $500,000 over the book value of the subsidiary's Stockholders' Equity on the acquisition date. The parent assigned the excess to the following [A] assets: CA] Asset Initial Fair Value Useful Life (years) Initial Useful [A] Asset Fair Value Life (years) Property plant and equipment (PPE), net 595,000 10 Customer list 155,000 10 Goodwill 250,000 Indefinite $500,000 80% of the Goodwill is allocated to the parent. The parent and the subsidiary report the following financial statements at December 31, 2013: Parent Subsidiary Parent Subsidiary Income statement: Balance sheet: Sales 57,330,000 $1,871,500 Assets Cost of goods sold (5,131,000) (1,122,300) Cash $412,113 $132.511 Gross Accounts profit 2,199,000 749,200 receivable 938,240 433,956 Income (loss) from subsidiary 190,296 Inventory 1,422,020 557,409 Operating Equity expenses (1,392,700) (486,330) investment 1,476,471 Property plant and Net equipment income $996,596 262,870 (PPE), net 5,374,356 1,280,669 $9,623,200 $2,404,545 Statement of retained earnings: Liabilities BOY and retained stockholders' earnings $3,682,592 $966,425 equity Net Current income 996,596 262,870 liabilities $1,053,321 $433,956 Long-term Dividends (199,159) (39,281) liabilities 2,000,000 500,000 EOY retained Common earnings $4,480,029 $1,190,014 stock 1,198,455 124,700 APIC 891,395 155,875 Retained earnings 4,480,029 1,190,014 $9,623,200 $2,404,545 Unamortized 1/1/2014 0 0 0 0 a. Disaggregate and document the activity for the 100% Acquisition Accounting Premium (AAP), the controlling interest AAP and the noncontrolling interest AAP. Note: Do not use negative signs with any of your answers below. Unamortized Unamortized Unamortized Unamortized Unamortized 2009 2010 2011 2012 2013 1/1/2009 Amortization 1/1/2010 Amortization 1/1/2011 Amortization 1/1/2012 Amortization 1/1/2013 Amortization Property, plant and equipment (PPE), net 0 0 0 0 0 0 0 0 0 Customer list 0 0 0 0 0 0 0 0 0 0 Goodwill 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Parent: Property, plant and equipment (PPE), net 0 0 0 0 0 0 0 0 0 0 Customer list 0 0 0 0 0 0 0 0 0 0 Goodwill 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Subsidiary: Property, plant and equipment (PPE), net 0 0 0 0 0 0 0 0 0 0 Customer list 0 0 0 0 0 0 0 0 0 0 Goodwill 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 b. Calculate and organize the profits and losses on intercompany transactions and balances. Downstream Upstream Jan. 1, 2013 Dec 31, 2013 0 0 0 0