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help with the wrong answers PLEASE WILL UPVOTE NEED ASAP Allison Corporation acquired all of the outstanding voting stock of Mathias, Incorporated, on January 1
help with the wrong answers PLEASE WILL UPVOTE NEED ASAP Allison Corporation acquired all of the outstanding voting stock of Mathias, Incorporated, on January in exchange for $ in cash. Allison intends to maintain Mathias as a wholly owned subsidiary. Both companies have December fiscal yearends. At the acquisition date, Mathiass stockholders equity was $ including retained earnings of $ At the acquisition date, Allison prepared the following fairvalue allocation schedule for its newly acquired subsidiary: Consideration transferred $ Mathias stockholders' equity Excess fair over book value $ to unpatented technology year remaining life $ to patents year remaining life to increase longterm debt undervaluedyear remaining life Goodwill $ Postacquisition, Allison employs the equity method to account for its investment in Mathias. During the two years following the business combination, Mathias reports the following income and dividends: Year Income Dividends $ $ No asset impairments have occurred since the acquisition date. Individual financial statements for each company as of December follow. Parentheses indicate credit balances. Dividends declared were paid in the same period. Items Allison Mathias Income Statement Sales $ $ Cost of goods sold Depreciation expense Amortization expense Interest expense Equity earnings in Mathias Net income $ $ Statement of Retained Earnings Retained earnings, $ $ Net income above Dividends declared Retained earnings, $ $ Balance Sheet Cash $ $ Accounts receivable Inventory Investment in Mathias Equipment net Patents Unpatented technology Goodwill Total assets $ $ Accounts payable $ $ Longterm debt Common stock Retained earnings, Total liabilities and equity $ $ Required: Determine the annual excess fair over book value amortization.
help with the wrong answers PLEASE WILL UPVOTE NEED ASAP
Allison Corporation acquired all of the outstanding voting stock of Mathias, Incorporated, on January in exchange for $ in cash. Allison intends to maintain Mathias as a wholly owned subsidiary. Both companies have December fiscal yearends. At the acquisition date, Mathiass stockholders equity was $ including retained earnings of $
At the acquisition date, Allison prepared the following fairvalue allocation schedule for its newly acquired subsidiary:
Consideration transferred $
Mathias stockholders' equity
Excess fair over book value $
to unpatented technology year remaining life $
to patents year remaining life
to increase longterm debt undervaluedyear remaining life
Goodwill $
Postacquisition, Allison employs the equity method to account for its investment in Mathias. During the two years following the business combination, Mathias reports the following income and dividends:
Year Income Dividends
$ $
No asset impairments have occurred since the acquisition date.
Individual financial statements for each company as of December follow. Parentheses indicate credit balances. Dividends declared were paid in the same period.
Items Allison Mathias
Income Statement
Sales $ $
Cost of goods sold
Depreciation expense
Amortization expense
Interest expense
Equity earnings in Mathias
Net income $ $
Statement of Retained Earnings
Retained earnings, $ $
Net income above
Dividends declared
Retained earnings, $ $
Balance Sheet
Cash $ $
Accounts receivable
Inventory
Investment in Mathias
Equipment net
Patents
Unpatented technology
Goodwill
Total assets $ $
Accounts payable $ $
Longterm debt
Common stock
Retained earnings,
Total liabilities and equity $ $
Required:
Determine the annual excess fair over book value amortization.
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