January 1, 2013 Acquisition Date Data: Bamb-Bamb Incorporated acquired 75 percent of the outstanding common stock of Pebbles Corporation on January 1, 2013. Bamb-Bamb Incorporated paid a total of $835,000 in cash for these shares. The 25 percent noncontrolling interest shares had a total fair value of $255.000 both before and after Bamb-Bamb Incorporated's acquisition. The Book Value of Pebbles Corporation's Net Assets on January 1, 2013 was $465,000, which included the following: Pebbles Corporations January Common Stock ($135,000) Additional Paid In Capital ($160,000) Retained Earnings, January 1, 2013 ($170,000) Bamb-Bamb Incorporated uses the Partial Equity method for internal recordkeeping to monitor the activities of Pebbles Corporation. At the acquisition date, the carrying amounts of Pebbles Corporation's assets and liabilities were generally equivalent to the fair value except for the following: Assets/Liabilities Book Value Equipment(Net) $65.000 Buildings (Net) $295.000 Land $100,000 Loan Payable ($250,000) Fair Value $110.000 $500,000 $150.000 ($300,000) Reaming Useful Life 10 Years 20 Years NA 8 Years Fiscal Year 2014 Data: On January 1, 2014 Bamb-Bamb Inc sold Pebbles Corp a Building for $120,000 cash. The Buildings net book value on January 1, 2014 was $80,000 and its originally purchased price was $100,000. The building is expected to be usable for another 16 years. Both Bamb-Bamband Pebbles use the straight line method for depreciating assets. Part#3 - Subsection(axConsolidations) Calculate the annual excess amortization using the acquisition date fair value over book value of the identifiable assets and liabilities on the date of acquisition. Part#3 - Subsection(b){Consolidations} Prepare the consolidated journal entries on December 31, 2015 for the Intra-Entity Building Transfer. Part#3 - Subsection(e)(Consolidations) The following consolidated worksheet for Bamb-Bamb Incorporated and Pebbles Corporation is to be used along with the information provided above to determine the consolidated balances "1)" through "9)" below [Note: Calculations are involved): Bamb-Bamb Incorporated & Pebbles Corporation Consolidated Worksheet For Year Ending Dec ember 31, 2015 Bamb-Bamb Consolidated Entries Noncontrolling Consolidated Accounts Incorporated Pebbles Corporation Debit Credit Interest Totals Income Statement Sales Revenue ($535,000) ($510,000) Cost of Goods Sold $211,900 $135,000 Utilities Expense $76,000 $68,000 Deprecation Expense $85.000 $80,000 2.) 1.) Interest Expense $65.000 $27.000 2.) Investment Income ($150,000) 3.) Separate Company Net Income ($247.100) ($200,000) Consolidated Net Income Net Income Attributable To Noncontrolling Interest 4.) Net Income Attributable to Gibson Corporation Statement of Retained Earnings Retained Earnings 1/1/15 (5556,925) ($231,000) 5.) 6.) 7.) ($200,000) $60,000 ($371,000) Net Income (Above) Dividends Declared Retained Earnings 12/31/15 8.) ($247,100) $95.400 (5708,625) Bamb-Bamb Incorporated Pebbles Corporation Consolidated Entries Credit Noncontrolling Interest Consolidated Totals Debit Accounts Balance Sheet Assets: Cash Accounts Receivables Investment in Pebbles Corporation $725,000 $122,875 $985,750.00 $384,500 $45,000 8.) 3.) 6.) 7.) 9.) 2.) 2.) 3.) $394,500 $473,500 Equipment(net) Building(net) $75,000 $165.000 $250,000 $80,000 9. $370,000 1. 9.) $125,000 9.) 9.) $1,004,500 $2,323,625 $2,938,125.00 Land Goodwill Total Assets Liabilities: Accounts Payable Loans Payable Total Liabilities ($365,000) ($600.000) ($965,000) ($108,500) ($230,000) 2.) ($338,500) 9.) Common Stock Additional Paid In Capital ($650,000) ($135,000) 7.) ($160,000) 7.) Noncontrolling Interest In Keller Company 1/1/15 7.) 9.) $131,500 $134,500 Noncontrolling interest In Keller Company 12/31/15 Retained Earning (Above) Total Owners Equity Total Liabilities & Owners Equity ($708 625) ($1,358,625) ($2,323,625 ($371,000 ($666.000) ($1.004,500) $1,440,250 $1,440,250 ($2,938,125) January 1, 2013 Acquisition Date Data: Bamb-Bamb Incorporated acquired 75 percent of the outstanding common stock of Pebbles Corporation on January 1, 2013. Bamb-Bamb Incorporated paid a total of $835,000 in cash for these shares. The 25 percent noncontrolling interest shares had a total fair value of $255.000 both before and after Bamb-Bamb Incorporated's acquisition. The Book Value of Pebbles Corporation's Net Assets on January 1, 2013 was $465,000, which included the following: Pebbles Corporations January Common Stock ($135,000) Additional Paid In Capital ($160,000) Retained Earnings, January 1, 2013 ($170,000) Bamb-Bamb Incorporated uses the Partial Equity method for internal recordkeeping to monitor the activities of Pebbles Corporation. At the acquisition date, the carrying amounts of Pebbles Corporation's assets and liabilities were generally equivalent to the fair value except for the following: Assets/Liabilities Book Value Equipment(Net) $65.000 Buildings (Net) $295.000 Land $100,000 Loan Payable ($250,000) Fair Value $110.000 $500,000 $150.000 ($300,000) Reaming Useful Life 10 Years 20 Years NA 8 Years Fiscal Year 2014 Data: On January 1, 2014 Bamb-Bamb Inc sold Pebbles Corp a Building for $120,000 cash. The Buildings net book value on January 1, 2014 was $80,000 and its originally purchased price was $100,000. The building is expected to be usable for another 16 years. Both Bamb-Bamband Pebbles use the straight line method for depreciating assets. Part#3 - Subsection(axConsolidations) Calculate the annual excess amortization using the acquisition date fair value over book value of the identifiable assets and liabilities on the date of acquisition. Part#3 - Subsection(b){Consolidations} Prepare the consolidated journal entries on December 31, 2015 for the Intra-Entity Building Transfer. Part#3 - Subsection(e)(Consolidations) The following consolidated worksheet for Bamb-Bamb Incorporated and Pebbles Corporation is to be used along with the information provided above to determine the consolidated balances "1)" through "9)" below [Note: Calculations are involved): Bamb-Bamb Incorporated & Pebbles Corporation Consolidated Worksheet For Year Ending Dec ember 31, 2015 Bamb-Bamb Consolidated Entries Noncontrolling Consolidated Accounts Incorporated Pebbles Corporation Debit Credit Interest Totals Income Statement Sales Revenue ($535,000) ($510,000) Cost of Goods Sold $211,900 $135,000 Utilities Expense $76,000 $68,000 Deprecation Expense $85.000 $80,000 2.) 1.) Interest Expense $65.000 $27.000 2.) Investment Income ($150,000) 3.) Separate Company Net Income ($247.100) ($200,000) Consolidated Net Income Net Income Attributable To Noncontrolling Interest 4.) Net Income Attributable to Gibson Corporation Statement of Retained Earnings Retained Earnings 1/1/15 (5556,925) ($231,000) 5.) 6.) 7.) ($200,000) $60,000 ($371,000) Net Income (Above) Dividends Declared Retained Earnings 12/31/15 8.) ($247,100) $95.400 (5708,625) Bamb-Bamb Incorporated Pebbles Corporation Consolidated Entries Credit Noncontrolling Interest Consolidated Totals Debit Accounts Balance Sheet Assets: Cash Accounts Receivables Investment in Pebbles Corporation $725,000 $122,875 $985,750.00 $384,500 $45,000 8.) 3.) 6.) 7.) 9.) 2.) 2.) 3.) $394,500 $473,500 Equipment(net) Building(net) $75,000 $165.000 $250,000 $80,000 9. $370,000 1. 9.) $125,000 9.) 9.) $1,004,500 $2,323,625 $2,938,125.00 Land Goodwill Total Assets Liabilities: Accounts Payable Loans Payable Total Liabilities ($365,000) ($600.000) ($965,000) ($108,500) ($230,000) 2.) ($338,500) 9.) Common Stock Additional Paid In Capital ($650,000) ($135,000) 7.) ($160,000) 7.) Noncontrolling Interest In Keller Company 1/1/15 7.) 9.) $131,500 $134,500 Noncontrolling interest In Keller Company 12/31/15 Retained Earning (Above) Total Owners Equity Total Liabilities & Owners Equity ($708 625) ($1,358,625) ($2,323,625 ($371,000 ($666.000) ($1.004,500) $1,440,250 $1,440,250 ($2,938,125)