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EXERCISE 5 - 9 Allocation of Cost and Workpaper Entries LO 1 LO 3 L O 7 On January 1 , 2 0 1 8
EXERCISE Allocation of Cost and Workpaper Entries LO LO On January Point Corporation acquired an interest in Sharp Company for $ At that time Sharp Company had capital stock of $ and retained earnings of $ The book values of Sharp Company's assets and liabilities were equal to their fair values except for land and bonds payable. The land had a fair value of $ and a book value of $ The outstanding bonds were issued at par value on January pay annually, and mature on January The bond principal is $ and the current yield rate on similar bonds is Required: A Prepare a Computation and Allocation Schedule for the difference between book value and the value implied by the purchase price in the consolidated statements workpaper on the acquisition date. B Prepare the workpaper entries necessary on December to allocate and depreciate the difference between book value and the value implied by the purchase price.
EXERCISE
Allocation of Cost and Workpaper Entries LO LO
On January Point Corporation acquired an interest in Sharp
Company for $ At that time Sharp Company had capital stock of
$ and retained earnings of $ The book values of Sharp
Company's assets and liabilities were equal to their fair values except for land
and bonds payable. The land had a fair value of $ and a book value of
$ The outstanding bonds were issued at par value on January
pay annually, and mature on January The bond principal is
$ and the current yield rate on similar bonds is
Required:
A Prepare a Computation and Allocation Schedule for the difference
between book value and the value implied by the purchase price in the
consolidated statements workpaper on the acquisition date.
B Prepare the workpaper entries necessary on December to
allocate and depreciate the difference between book value and the value
implied by the purchase price.
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