HW 3-5 On January 1, 2020, Pumpkin Corporation acquired 70% of Spice Company's common stock for $210,000 in cash. Data from the balance sheets of the two companies at the date of acquistion are shown below: Answer the following questions regarding this business combination and the consolidated balance sheet at the date of acquistion. Pumpkin Spice A. What amount will be reported as noncontrolling interest in the consolidated balance sheet prepared immediately after the business combination? Cash Accounts Receivable Inventory Land Buildings/Equipment Less: Accumulated Depreciation Investment in Spice Total Assets 50,000 70,000 30,000 150,000 250,000 - 70,000 210,000 690,000 15,000 25,000 20,000 80,000 200,000 -20,000 B. What amount of goodwill will be reported in the consolidated balance sheet prepared immediately after the business combination? $60,000.00 C. What amount of total inventory will be reported in the consolidated balance sheet prepared immediately after the business combination? 320,000 D. What amount of total assets will be reported in the consolidaed balance sheet prepared immediately after the business combination? Accounts Payable Bonds Payable Common Stock Retained Earnings Total Liabilites/Equity 40,000 150,000 300,000 200,000 690,000 10,000 40,000 90,000 180,000 320,000 E. What amount of consolidated retained earnings will be reported in the consolidated balance sheet prepared immediately after the business combination? $500,000.00 At the date of the business combination, the book values of Spice's assets and liabilities approximated fair value except for inventory whichhad a fair value of $30,000 and land which had a fair value of $95,000. F. What amount will be reported as total stockholders' equity in the consolidated balance sheet prepared immediately after the business combination? HW 3-5 On January 1, 2020, Pumpkin Corporation acquired 70% of Spice Company's common stock for $210,000 in cash. Data from the balance sheets of the two companies at the date of acquistion are shown below: Answer the following questions regarding this business combination and the consolidated balance sheet at the date of acquistion. Pumpkin Spice A. What amount will be reported as noncontrolling interest in the consolidated balance sheet prepared immediately after the business combination? Cash Accounts Receivable Inventory Land Buildings/Equipment Less: Accumulated Depreciation Investment in Spice Total Assets 50,000 70,000 30,000 150,000 250,000 - 70,000 210,000 690,000 15,000 25,000 20,000 80,000 200,000 -20,000 B. What amount of goodwill will be reported in the consolidated balance sheet prepared immediately after the business combination? $60,000.00 C. What amount of total inventory will be reported in the consolidated balance sheet prepared immediately after the business combination? 320,000 D. What amount of total assets will be reported in the consolidaed balance sheet prepared immediately after the business combination? Accounts Payable Bonds Payable Common Stock Retained Earnings Total Liabilites/Equity 40,000 150,000 300,000 200,000 690,000 10,000 40,000 90,000 180,000 320,000 E. What amount of consolidated retained earnings will be reported in the consolidated balance sheet prepared immediately after the business combination? $500,000.00 At the date of the business combination, the book values of Spice's assets and liabilities approximated fair value except for inventory whichhad a fair value of $30,000 and land which had a fair value of $95,000. F. What amount will be reported as total stockholders' equity in the consolidated balance sheet prepared immediately after the business combination
