Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

E5-4 Computation of Consolidated Balances LO 5-2 Statue Corporation's balance sheet at January 1, 20X7, reflected the following balances: Liabilities&Stockholders Equity Assets Cash & Receivables

image text in transcribed
image text in transcribed
E5-4 Computation of Consolidated Balances LO 5-2 Statue Corporation's balance sheet at January 1, 20X7, reflected the following balances: Liabilities&Stockholders Equity Assets Cash & Receivables Inventory Land Buildings&Equipment (net) 83,000 Accounts Payable 127,000 Income Taxes Payable 73,000 Bonds Payable 00,000 Common Stock 22,000 46,000 273,000 246,000 196,000 $783,000 Retained Earnings Total Assets $783,000 Total Liabilities&stockholders Equity Prize Corporation entered into an active acquisition program and acquired 80 percent of Statue's common stock on January 2, 20X7, for $462,000. The fair value of the noncontrolling interest at that date was determined to be $115,500. A careful review of the fair valu of Statue's assets and liabilities indicated the following: Inventory Land Buildings& Equipment (net) $127,000 73,000 500,000 k ValueFair Value $147,000 63,000 564,000 Goodwill is assigned proportionately to Prize and the noncontrolling shareholders. Required: Compute the appropriate amount related to Statue to be included in the consolidated balance sheet immediately following the acquisition for each of the following items: Amounts a. IInventorv f rize Corporation entered into an active acquisition program and acquired 80 percent of Statue's common stock on January 2 or $462,000. The fair value of the noncontrolling interest at that date was determined to be $115,500. A careful review of the f f Statue's assets and liabilities indicated the following: Book Value Fair Value Inventory Land Buildings & Equipment (net) $127,000 147,000 63,000 564,000 73,000 500,000 Goodwill is assigned proportionately to Prize and the noncontrolling shareholders Required: Compute the appropriate amount related to Statue to be included in the consolidated balance sheet immediately following the acquisition for each of the following items: Amounts a. Inventory b. Land c. Buildings and equipment (net) d. Goodwill e. Investment in Statue Corporation Noncontrolling interest

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_2

Step: 3

blur-text-image_3

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

Financial Accounting Information For Decisions

Authors: Robert w Ingram, Thomas L Albright

6th Edition

9780324313413, 324672705, 324313411, 978-0324672701

Students also viewed these Accounting questions

Question

Describe effectiveness of reading at night?

Answered: 1 week ago

Question

find all matrices A (a) A = 13 (b) A + A = 213

Answered: 1 week ago

Question

Is conflict always unhealthy? Why or why not? (Objective 4)

Answered: 1 week ago