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I need to do the consolidated balance sheet for 2015 Pitino acquired 90 percent of Brey's outstanding shares on January 1, 2013, in exchange for
I need to do the consolidated balance sheet for 2015
Pitino acquired 90 percent of Brey's outstanding shares on January 1, 2013, in exchange for $342,000 in cash. The subsidiary's stockholders' equity accounts totaled $326,000 and the noncontrolling interest had a fair value of $38,000 on that day. However, a building (with a 9-year remaining life) in Brey's accounting records was undervalued by $18,000. Pitino assigned the rest of the excess fair value over book value to Brey's patented technology (6-year remaining life). Brey reported net income from its own operations of $64,000 in 2013 and $80,000 in 2014. Brey declared dividends of $19,000 in 2013 and $23,000 in 2014 Brey sells inventory to Pitino as follows: Inventory Remaining at Year-End (at transfer price) 25,000 37,500 50,000 Transfer Price to Pitino Year 2013 2014 Cost to Brey $69,000 81,000 92,800 $115,000 135,000 160,000 At December 31, 2015, Pitino owes Brey $16,000 for inventory acquired during the period. The following separate account balances are for these two companies for December 31, 2015, and the year then ended. Credits are indicated by parentheses. Pitino acquired 90 percent of Brey's outstanding shares on January 1, 2013, in exchange for $342,000 in cash. The subsidiary's stockholders' equity accounts totaled $326,000 and the noncontrolling interest had a fair value of $38,000 on that day. However, a building (with a 9-year remaining life) in Brey's accounting records was undervalued by $18,000. Pitino assigned the rest of the excess fair value over book value to Brey's patented technology (6-year remaining life). Brey reported net income from its own operations of $64,000 in 2013 and $80,000 in 2014. Brey declared dividends of $19,000 in 2013 and $23,000 in 2014 Brey sells inventory to Pitino as follows: Inventory Remaining at Year-End (at transfer price) 25,000 37,500 50,000 Transfer Price to Pitino Year 2013 2014 Cost to Brey $69,000 81,000 92,800 $115,000 135,000 160,000 At December 31, 2015, Pitino owes Brey $16,000 for inventory acquired during the period. The following separate account balances are for these two companies for December 31, 2015, and the year then ended. Credits are indicated by parenthesesStep by Step Solution
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