Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

If a number is there, it is already correct. Just need help with the blank spots in everything above Glant acquired all of Small's common

image text in transcribed

image text in transcribed

image text in transcribed

If a number is there, it is already correct. Just need help with the blank spots in everything above

Glant acquired all of Small's common stock on January 1, 2017, In exchange for cash of $770,000. On that day. Small reported common stock of $170,000 and retained eamings of $400,000. At the acquisition date, $56,500 of the falr-value price was attributed to undervalued land while $75,000 was assigned to undervalued equipment having a 10 -year remaining life. The $68,500 unallocated portion of the acquisition-date excess falr value over book value was vlewed as goodwill. Over the next few years, Glant applied the equity method to the recording of this Investment. The following are Indlvidual financlal statements for the year ending December 31, 2021. On that date, Small owes Glant \$16,200. Small declared and pald dividends In the same perlod. Credits are Indicated by parentheses. a. How was the $212,500 Equity in Income of Small balance computed? b. Determine the totals to be reported by this business combination for the year ending December 31,2021. c. Prepare a consolidation worksheet for Glant and Small for the year ending December 31, 2021. d. If Glant determined that the entire amount of goodwill from its investment in Small was Impalred in 2021, what journal entry would Glant make to record such impalrment? Complete this question by entering your answers in the tabs below. How was the $212,500 Equity in Income of Small balance computed? Complete this question by entering your answers in the tabs below. Determine the totals to be reported by this business combination for the year ending December 31,2021 . (Input all amounts as positive values.) Complete this question by entering your answers in the tabs below. Prepare a consolidation worksheet for Giant and Small for the year ending December 31, 2021. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Amounts in the Debit and Credit columns should be entered as positive. Input all amounts as positive values.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions