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Helpful answers to other questions from this problem: Total consolidated inventory = $30,000 Total consolidate Liabilities = $240,000 Consolidated Retained Earnings = $200,000 Consolidated Stockholder's
Helpful answers to other questions from this problem:
Total consolidated inventory = $30,000
Total consolidate Liabilities = $240,000
Consolidated Retained Earnings = $200,000
Consolidated Stockholder's Equity = $590,000
On January 1, 20X6, Pumpkin Corporation acquired 70 percent of Spice Company's common stock for $210.000 cash. The fair value of the noncontrolling interest at that date was determined to be $90,000. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition: Cash Accounts Receivable Inventory Land Buildings and Equipment Less: Accumulated Depreciation Investment in Spice Co. Total Assets Pumpkin $ 50,000 70,000 30,000 150,000 250,000 (70,000) 210,000 $ 690,000 Spice $ 15,000 25,000 20,000 80,000 200,000 (20,000) $320,000 Accounts Payable Bonds Payable Common Stock Retained Earnings Total Liabilities and Equity $40.000 150,000 300,000 200,000 $ 690,000 $10,000 40,000 90,000 180,000 $320,000 At the date of the business combination, the book values of Spice's assets and liabilities approximated fair value except for inventory, which had a fair value of $30,000, and land, which had a fair value of $95,000. Based on the preceding information, what amount of goodwill will be reported in the consolidated balance sheet prepared immediately after the business combination? Based on the preceding information, what amount of total assets will be reported in the consolidated balance sheet prepared immediately after the business combination? Based on the preceding information, what amount will be reported as noncontrolling interest in the consolidated balance sheet prepared immediately after the business combinationStep by Step Solution
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