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I need help on the consolidation worksheet On January 1, 2015, Brooks Corporation exchanged $1,259,000 fair-value consideration for all of the outstanding voting stock of
I need help on the consolidation worksheet
On January 1, 2015, Brooks Corporation exchanged $1,259,000 fair-value consideration for all of the outstanding voting stock of Chandler, Inc. At the acquisition date, Chandler had a book value equal to $1,145,000. Chandler's individual assets and liabilities had fair values equal to their respective book values except for the patented technology account, which was undervalued by $264,000 with an estimated remaining life of six years. The Chandler acquisition was Brooks's only business combination for the year. In case expected synergies did not materialize, Brooks Corporation wished to prepare for a potential future spin-off of Chandler, Inc. Therefore, Brooks had Chandler maintain its separate incorporation and independent accounting information system as elements of continuing value. On December 31, 2015, each company submitted the following financial statements for consolidation. Dividends were declared and paid in the same period. Brooks Corp Chandler Inc Income Statement (662,000) (553,000) Revenues Cost of goods sold 173,000 196,000 Gain on bargain purchase (150,000) Depreciation and amortization 140,000 147,000 Equity earnings from Chandler (166,000) Net income (665,000) (210,000) Statement of Retained Earnings $(1,800,000) (845,000) Retained earnings, 1/1 (665,000) Net income (above) (210,000) Dividends declared 50,000 00,000 $(2,265,000) $(1,005,000) Retained earnings, 12/ Balance Sheet Current assets 371,000 528,000 Investment in Chandler 1,525,000 Trademarks 115,000 225,000 412,000 Patented technology 341,000 Equipment 683,000 310,000 3,035,000 1,475,000 Total assetsStep by Step Solution
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