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I am just stuck on b and c. A is finished Problem 05-19 (LO2, 3, 4, 8) The following financlal statements were prepared on December
I am just stuck on b and c. A is finished
Problem 05-19 (LO2, 3, 4, 8) The following financlal statements were prepared on December 31, Year 6. Additional Information Pearl purchased 80% of the outstanding voting shares of Silver for $3,600,000 on July 1, Year 2, at which time Silver's retalned earnings were $460,000, and accumulated depreclation was $72,000. The acquisition differential on this date was allocated as Follows: 20% to undervalued Inventory 40% to equlpment-remaining useful life 8 years Balance to goodwill During Year 3, a goodwill Impalrment loss of $82,000 was recognized, and an Impalrment test conducted as at December 31, Year 6 . indicated that a further loss of $32,000 had occurred. Amortization expense is grouped with cost of goods sold and impalrment losses are grouped with adminlstrative expenses. Slver owes Pearl $87,000 on December 31, Year 6 . Required: (a) Prepare consolidated financlal statements on December 31, Year 6. (Input all amounts as positive values except accumulated depreclation which should be indicated by minus sign. Omit $ sign in your response.) b) Calculate goodwill impairment loss and non-controlling interest on the consolidated income statement for the year ended ecember 31, Year 6, under the identifiable net assets method. (Omit \$ sign in your response.) c) Calculate goodwill and non-controlling interest on the consolidated balance sheet at December 31, Year 6, under the identifiabl et assets method. (Omit \$ sign in your response.)Step by Step Solution
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