Im having trouble getting the amortization expense and patents. How do I calculate the differentials?
Part C question's:
B) Record entry to amortize the excess value reclassification
C) Record the excess value (differential) reclassification entry
Having trouble understanding what is the excess value. in order to calculate b and c.
I started by 21,000/10=2100
100,000*20%?
5 Peel Corporation purchased 60 percent of Split Products Company's shares on December 31, 20X7 for $215,000. At that date, the fair value of the noncontrolling interest was $144,000. On January 1, 20X9. Peel purchased an additional 20 percent of Split's common stock for $100,000. Summarized balance sheets for Split on the dates indicated are as follows 2017 December 31 axs 20 Assets Cash Accounts Receivable Inventory Buildings & Equipment (net) Total Assets Llabilities & Equities Accounts Payable Bonds Payable Common Stock Retained Earnings Total Liabilities & Equities $49, 56,00 71.000 160.000 3536,000 $79.000 96,000 101,000 340,000 5616,000 599,000 120,000 161.000 320,00 5706.000 71,000 105.000 155.000 205,000 5536.000 $121,000 105.000 155.000 235.000 5616.00 1161.000 105,000 195.000 209 3206.000 Split paid dividends of $21,000 in each of the three years. Peel uses the equity method in accounting for its investment in Split and amortizes all differentials over 10 years against the related investment income. All differentials are assigned to patents in the consolidated financial statements c. Prepare the consolidation entries needed as of December 31, 20x9, to complete a three-part consolidation worksheet (if no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view transaction list transaction list No Event Accounts Credit 1 Common stock Retained earnings Income from Split Products Co. NCI in Nl of Split Products Co. Dividends declared Investment in Split Products Co. NCI IN NA of Split Products Co. Debit 155,000 235,000 56,800 14,200 21,000 352,000 88,000 B 2 Antonization expense Income from Split Products Co. 3 Patents Investment in Split Products Co. Prepare the consolidation entries needed as of December 31, 20X9, to complete a three-part consolidation worksheet. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) Answer is complete but not entirely correct. No Event Accounts Debit Credit A 1 Common stock Retained earning Income from Sple Products Co NCI in Nl of Split Products Co Dividends declared Investment in Split Products Co NCI I NA of Split Products Co. 155,000 235.000 56.800 14200 21.000 352.000 88 000 B 2 Amortization expense Income from Split Products Co. 2.100 2100 3 Patents Investment in Split Products Co 179003 17.900 Peel Corporation purchased 60 percent of Split Products Company's shares on December 31, 20X7 for $216.000. At that date, the fair value of the noncontrolling interest was $144,000. On January 1, 20X9. Peel purchased an additional 20 percent of Split's common stock for $100,000. Summarized balance sheets for Split on the dates indicated are as follows: 20x7 December 31 20x8 20x9 $ 49,000 56,000 72,000 360,000 $536,000 Assets Cash Accounts Receivable Inventory Buildings & Equipment (net) Total Assets Liabilities & Equities Accounts Payable Bonds, Payable Connon Stock Retained Earnings Total Liabilities & Equities $ 79,000 96,000 101.000 340,000 5616,000 $ 99,000 126.000 161.000 320.000 $706,000 $ 71,000 195.000 155,000 $121,000 105,000 155,000 235.000 5616.00 $161.000 105,000 155,000 25,000 $706,000 3536.000 Split paid dividends of $21000 in each of the three years. Peet uses the equity method in accounting for its investment in Split and amortizes all differentials over 10 years against the related investment income. All differentials are assigned to patents in the consolidated financial statements Required: a Compute the balance in Peel's Investment in Split Products Company Stock account on December 31, 20x8 Balance in westen account $234.000 b. Compute the balance in Peel's Investment in Split Products Company Stock account on December 31, 20X9 Balance in a 5 Peel Corporation purchased 60 percent of Split Products Company's shares on December 31, 20X7 for $215,000. At that date, the fair value of the noncontrolling interest was $144,000. On January 1, 20X9. Peel purchased an additional 20 percent of Split's common stock for $100,000. Summarized balance sheets for Split on the dates indicated are as follows 2017 December 31 axs 20 Assets Cash Accounts Receivable Inventory Buildings & Equipment (net) Total Assets Llabilities & Equities Accounts Payable Bonds Payable Common Stock Retained Earnings Total Liabilities & Equities $49, 56,00 71.000 160.000 3536,000 $79.000 96,000 101,000 340,000 5616,000 599,000 120,000 161.000 320,00 5706.000 71,000 105.000 155.000 205,000 5536.000 $121,000 105.000 155.000 235.000 5616.00 1161.000 105,000 195.000 209 3206.000 Split paid dividends of $21,000 in each of the three years. Peel uses the equity method in accounting for its investment in Split and amortizes all differentials over 10 years against the related investment income. All differentials are assigned to patents in the consolidated financial statements c. Prepare the consolidation entries needed as of December 31, 20x9, to complete a three-part consolidation worksheet (if no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view transaction list transaction list No Event Accounts Credit 1 Common stock Retained earnings Income from Split Products Co. NCI in Nl of Split Products Co. Dividends declared Investment in Split Products Co. NCI IN NA of Split Products Co. Debit 155,000 235,000 56,800 14,200 21,000 352,000 88,000 B 2 Antonization expense Income from Split Products Co. 3 Patents Investment in Split Products Co. Prepare the consolidation entries needed as of December 31, 20X9, to complete a three-part consolidation worksheet. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) Answer is complete but not entirely correct. No Event Accounts Debit Credit A 1 Common stock Retained earning Income from Sple Products Co NCI in Nl of Split Products Co Dividends declared Investment in Split Products Co NCI I NA of Split Products Co. 155,000 235.000 56.800 14200 21.000 352.000 88 000 B 2 Amortization expense Income from Split Products Co. 2.100 2100 3 Patents Investment in Split Products Co 179003 17.900 Peel Corporation purchased 60 percent of Split Products Company's shares on December 31, 20X7 for $216.000. At that date, the fair value of the noncontrolling interest was $144,000. On January 1, 20X9. Peel purchased an additional 20 percent of Split's common stock for $100,000. Summarized balance sheets for Split on the dates indicated are as follows: 20x7 December 31 20x8 20x9 $ 49,000 56,000 72,000 360,000 $536,000 Assets Cash Accounts Receivable Inventory Buildings & Equipment (net) Total Assets Liabilities & Equities Accounts Payable Bonds, Payable Connon Stock Retained Earnings Total Liabilities & Equities $ 79,000 96,000 101.000 340,000 5616,000 $ 99,000 126.000 161.000 320.000 $706,000 $ 71,000 195.000 155,000 $121,000 105,000 155,000 235.000 5616.00 $161.000 105,000 155,000 25,000 $706,000 3536.000 Split paid dividends of $21000 in each of the three years. Peet uses the equity method in accounting for its investment in Split and amortizes all differentials over 10 years against the related investment income. All differentials are assigned to patents in the consolidated financial statements Required: a Compute the balance in Peel's Investment in Split Products Company Stock account on December 31, 20x8 Balance in westen account $234.000 b. Compute the balance in Peel's Investment in Split Products Company Stock account on December 31, 20X9 Balance in a
