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Hullett Enterprises acquired Owens. Inc. on January I, 2011, The $450.COO excess of cost over book value Of Owens' net assets was partly attributable
Hullett Enterprises acquired Owens. Inc. on January I, 2011, The $450.COO excess of cost over book value Of Owens' net assets was partly attributable to a patent undervalued by S200.OOO. The patent has a 10-year life, The remaining excess is considered goodwill. The separate financial statements of the two companies for 2015 are presented a Prepare all necessary consolidation entries for 2015 consolidated financial statements b. Now assume that at year-end a goodwill impairment test is conducted before the consolidated statements are issued, The estimated fair value Of the subsidiary is S 1.500000. The fair value Of the identifiable net assets is Sl .300.000. journal entries resulting from the test. Sales revenue Cost of goods sold G ross profit Operating expenses Equity income Net Income Retained Earnings, 1/1/15 Net income Dividend S Retained Earnings. 12/31/15 Cash and receivables Inventory Equity investment Property, plant & equipment (Net) Total Assets Accounts payable Accrued liabilities Notes payable Common stock Additional paid-in capital Retained Earnings, 12/31/15 Total Liabilities and Equities Hullett (2381 400) 926,100 (496.125) 194.725 700 s 3731.900 624,700 (124.940) 1.421.264 6 834 618 SII nqa pog s 484.218 575,506 1500.000 515,225 3,787.500 4 231 660 094 Prepare any Sl ,533.750 (920.250) 613.500 (398,775) 792,437 214.725 (32.209) s 074 953 751,026 457,058 845 $ 146.21B 191,207 511.250 102,252 127.812 974 953
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