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HI can you please help me solve this problem. Thank you On December 31,20x7, PA. Inc purchased 90 percent of 5 Company for 240,000 cash.
HI can you please help me solve this problem. Thank you
On December 31,20x7, PA. Inc purchased 90 percent of 5 Company for 240,000 cash. The B alance Sheet of each comporation just prior to the acquisition is presented below. Additionally, boole value and fair value for all of 5 assets and liabilities are equal, with the exception of Property, plant and equipment, whose fair value is 94000 . 1. Recording the purchase of S Company by P Company. 2. What is the implied fair value of S Company? 3. Calculate the amount of Goodwill implicit in the purchase. 4. What is the amount of non-controlling interest share in S Company at the date of acquisition? 5. What is the consolidated. depreciation expense to be reflected in the consolidated income statement for 20x8 assuming a 10 year depreciation life for property, plant and equipment? 6. Prepare the necessary workpaper adjusting entries on the date of purchase. 7. Prepare a consolidated Balance Sheet immediately after this acquisition on 12/31/20x7Step by Step Solution
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