LO 6 4 48 On June 30, 2014, Plaster, Inc , paid $916,000 for 80 percent of Stucco Company's outstanding stock Plaster assessed the acquisition date fair value of the 20 percent noncontrolling interest at $229,000 At acquisition date, Stucco reported the following book values for its assets and liabilities comp marginal text LO 6 4 Cash $60,000 Accounts receivable 127,000 Inventory 203,000 Land 65,000 Buildings 175,000 Equipment 300,000 Accounts payable (35,000) On June 30, Plaster allocated the excess acquisition date fair value over book value to Stucco's assets as follows Equipment (3 year remaining life) $75,000 Database (10 year remaining life) 175,000 Page 304 At the end of 2014, the following comparative (2013 and 2014) balance sheets and consolidated income statement were available Plaster, Inc December 31, 2013 Consolidated December 31, 2014 Cash $43,000 $242,850 Accounts receivable (net) 362,000 485,400 Inventory 415,000 720,000 Land 300,000 365,000 Buildings (net) 245,000 370,000 Equipment (net) 1,800,000 2,037,500 Database 0 166,250 Total assets $3,165,000 $4,387,000 Accounts payable $80,000 $107,000 Long term liabilities 400,000 1,200,000 Common stock 1,800,000 1,800,000 Noncontrolling interest 0 255,500 Retained earnings 885,000 1,024,500 Total liabilities and equities $3,165,000 $4,387,000 PLASTER, INC , AND SUBSIDIARY STUCCO COMPANY Consolidated Income Statement For the Year Ended December 31, 2014 Revenues $1,217,500 Cost of goods sold $737,500 Depreciation 187,500 Database amortization 8,750 Interest and other expenses 9,750 943,500 Consolidated net income $274,000 Additional Information for 2014 On December 1, Stucco paid a $40,000 dividend During the year, Plaster paid $100,000 in dividends During the year, Plaster issued $800,000 in long term debt at par Plaster reported no asset purchases or dispositions other than the acquisition of Stucco Prepare a 2014 consolidated statement of cash flows for Plaster and Stucco Use the indirect method of reporting cash flows from operating activities

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LO 6-4 48. On June 30, 2014, Plaster, Inc., paid $916,000 for 80 percent of Stucco Company's outstanding stock. Plaster assessed the acquisition-date fair value

LO 6-4

48.

On June 30, 2014, Plaster, Inc., paid $916,000 for 80 percent of Stucco Company's outstanding stock. Plaster assessed the acquisition-date fair value of the 20 percent noncontrolling interest at $229,000. At acquisition date, Stucco reported the following book values for its assets and liabilities:

comp:marginal text

LO 6-4

Cash . . . . .	$60,000
Accounts receivable . . . . .	127,000
Inventory . . . . .	203,000
Land . . . . .	65,000
Buildings . . . . .	175,000
Equipment . . . . .	300,000
Accounts payable . . . . .	(35,000)

On June 30, Plaster allocated the excess acquisition-date fair value over book value to Stucco's assets as follows:

Equipment (3-year remaining life) . . . . .	$75,000
Database (10-year remaining life) . . . . .	175,000

Page 304

At the end of 2014, the following comparative (2013 and 2014) balance sheets and consolidated income statement were available:

	Plaster, Inc. December 31, 2013	Consolidated December 31, 2014
Cash . . . . .	$43,000	$242,850
Accounts receivable (net) . . . . .	362,000	485,400
Inventory . . . . .	415,000	720,000
Land . . . . .	300,000	365,000
Buildings (net) . . . . .	245,000	370,000
Equipment (net) . . . . .	1,800,000	2,037,500
Database . . . . .	0	166,250
Total assets . . . . .	$3,165,000	$4,387,000
Accounts payable . . . . .	$80,000	$107,000
Long-term liabilities . . . . .	400,000	1,200,000
Common stock . . . . .	1,800,000	1,800,000
Noncontrolling interest . . . . .	0	255,500
Retained earnings . . . . .	885,000	1,024,500
Total liabilities and equities . . . . .	$3,165,000	$4,387,000

PLASTER, INC., AND SUBSIDIARY STUCCO COMPANY
Consolidated Income Statement
For the Year Ended December 31, 2014
Revenues . . . . .		$1,217,500
Cost of goods sold . . . . .	$737,500
Depreciation . . . . .	187,500
Database amortization . . . . .	8,750
Interest and other expenses . . . . .	9,750	943,500
Consolidated net income . . . . .		$274,000

Additional Information for 2014

On December 1, Stucco paid a $40,000 dividend. During the year, Plaster paid $100,000 in dividends.

During the year, Plaster issued $800,000 in long-term debt at par.

Plaster reported no asset purchases or dispositions other than the acquisition of Stucco.

Prepare a 2014 consolidated statement of cash flows for Plaster and Stucco. Use the indirect method of reporting cash flows from operating activities.