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Hi, I need the solution to the following question ASAP. We need to prepare consolidated financial statements using equity method and US GAAP Standards. On

Hi, I need the solution to the following question ASAP. We need to prepare consolidated financial statements using equity method and US GAAP Standards.

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On January 1, 2013 Detroit Corporation acquired Miami Corporation for one million shares of Detroit Stock, valued at $37 per share. Professional fees connected to the acquisition were $1,250,000 and costs of registering and issuing the new shares were $500,000, both paid in cash. Miami performs vehicle maintenance service for owners of auto, truck and bus fleets. Miami's balance sheet at acquisition date was as follow: Cash Account receivables Parts inventory 300,000 2,700,000 5,200,000 17,600,000 25,800,000 Total Assets 3,100,000 8,600,000 1,700,000 Current Liabilities Long-term Liabilities Common Stocks Additional Paid in Capta3,500,000 Retained Earnings Total Liabilities and Equity 25,800,000 8,900,000 In reviewing Miami's assets and liabilities at the acquisition date, Detroit determined the following On a discounted present value basis, the accounts receivables had a fair value of $2,600,000, and the long-term liabilities have a fair value of $8,000,000 with maturity of 20 years. The replacement cost of the parts inventory was $6,000,000. The turnover of short-term assets and liabilities is less than one year The current replacement cost of the equipment was $19,500,000. The equipment had a 16-year life Miami occupies its service facilities under an operating lease with ten years remaining. The rent is below current market levels, giving t Miami had long-term service contracts with several large fleet owners. These contracts have been profitable, the present value of expected profits over the remaining term (10 years) of the contracts is estimated at $2,000,000. These contracts meet the criteria for recognition separately Miami had a skilled and experience and train replacements would be $750,000 Miami's trade name is well-known $200,000. The estimated remaining life was 4 years. he leas e an estimated fair value of $1,250,000 assembled workforce. Detroit estimated that the cost to hire fleet owners and is estimated to have a fair value of On January 1, 2013 Detroit Corporation acquired Miami Corporation for one million shares of Detroit Stock, valued at $37 per share. Professional fees connected to the acquisition were $1,250,000 and costs of registering and issuing the new shares were $500,000, both paid in cash. Miami performs vehicle maintenance service for owners of auto, truck and bus fleets. Miami's balance sheet at acquisition date was as follow: Cash Account receivables Parts inventory 300,000 2,700,000 5,200,000 17,600,000 25,800,000 Total Assets 3,100,000 8,600,000 1,700,000 Current Liabilities Long-term Liabilities Common Stocks Additional Paid in Capta3,500,000 Retained Earnings Total Liabilities and Equity 25,800,000 8,900,000 In reviewing Miami's assets and liabilities at the acquisition date, Detroit determined the following On a discounted present value basis, the accounts receivables had a fair value of $2,600,000, and the long-term liabilities have a fair value of $8,000,000 with maturity of 20 years. The replacement cost of the parts inventory was $6,000,000. The turnover of short-term assets and liabilities is less than one year The current replacement cost of the equipment was $19,500,000. The equipment had a 16-year life Miami occupies its service facilities under an operating lease with ten years remaining. The rent is below current market levels, giving t Miami had long-term service contracts with several large fleet owners. These contracts have been profitable, the present value of expected profits over the remaining term (10 years) of the contracts is estimated at $2,000,000. These contracts meet the criteria for recognition separately Miami had a skilled and experience and train replacements would be $750,000 Miami's trade name is well-known $200,000. The estimated remaining life was 4 years. he leas e an estimated fair value of $1,250,000 assembled workforce. Detroit estimated that the cost to hire fleet owners and is estimated to have a fair value of

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