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Hawkeye Corporation acquired 75 percent of Gopher Company's ownership on January 1,208, for $96,000. At that date, the fair value of the noncontrolling interest was
Hawkeye Corporation acquired 75 percent of Gopher Company's ownership on January 1,208, for $96,000. At that date, the fair value of the noncontrolling interest was $32,000. The book value of Gopher's net assets at acquisition was $100,000. The book values and fair values of Gopher's assets and liabilities were equal, except for Gopher's buildings and equipment, which were worth $20,000 more than book value. Accumulated depreciation on the buildings and equipment was $30,000 on the acquisition date. Buildings and equipment are depreciated on a 10-year basis. Although goodwill is not amortized, the management of Hawkeye concluded at December 31 , 20X8, that goodwill from its purchase of Gopher shares had been impaired and the correct carrying amount was $2,500. Goodwill and goodwill impairment were assigned proportionately to the controlling and noncontrolling shareholders. A B C 30 Required: 31 Give all consolidation entries needed to prepare a three-part consolidation worksheet as of December 31,208. 33 Prepare a three-part consolidation worksheet for 208 in good form. 34 35 Note: Use cells A2 to A28 from the given information to complete this question. Hawkeye Corporation acquired 75 percent of Gopher Company's ownership on January 1,208, for $96,000. At that date, the fair value of the noncontrolling interest was $32,000. The book value of Gopher's net assets at acquisition was $100,000. The book values and fair values of Gopher's assets and liabilities were equal, except for Gopher's buildings and equipment, which were worth $20,000 more than book value. Accumulated depreciation on the buildings and equipment was $30,000 on the acquisition date. Buildings and equipment are depreciated on a 10-year basis. Although goodwill is not amortized, the management of Hawkeye concluded at December 31 , 20X8, that goodwill from its purchase of Gopher shares had been impaired and the correct carrying amount was $2,500. Goodwill and goodwill impairment were assigned proportionately to the controlling and noncontrolling shareholders. A B C 30 Required: 31 Give all consolidation entries needed to prepare a three-part consolidation worksheet as of December 31,208. 33 Prepare a three-part consolidation worksheet for 208 in good form. 34 35 Note: Use cells A2 to A28 from the given information to complete this
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