Need help with solving parts a & b for problem 4.8
Consolidation After Four Years On January 1, 2017, Perth Company acquired all of Sharbati pany voting stock for $16 million in cash. Some of Sharbot's identifiable assets at the date of acquista The Rewind Determine Bowen's amortization expense and impairment write- LO 1, 2,4 P4.8 had fair values that were different from reported values, as follows: Puant assets, net (20-year remaining wife, straight-line) Identifiable intangibles (5-year remaining life, straight-line) Sharbor total shareholders equity at January 1, 2017, was $4 million. It is now December 31, 2020 (four years later), Cumulative impairment for the goodwill recognized on this acquisition, to the beginning of Chapter 4 Consolidated Financial Statements Subsequent to Acquisition 177 in millions) Fair value $ 3 10 Book value $11 0 2020. is $2 million. Goodwill impairment for 2020 is S05 million. Perth uses the complete equity method to account for its investment in Sharbot on its own books. December 31, 2020 trial balances for Perth and Sharbot appear below. Perth Company Dr (CH) Sharbot Company Dr (Cr) $ 5,000 34.800 $ 2,500 28.000 (in thousands) Current assets Plant assets, net. Intangibles. Investment in Sharbot Liabilities. Capital stock Retained earnings, Jan. 1. . Sales revenue. Equity in net income of Sharbot... Cost of sales.. Operating expenses. Total 23,600 (22,000) (15,000) (25,000) (25,000) (400) 20,000 4,000 $ 0 (10,000) (2.000) (16,000) (14,000) 8,000 3,500 $ 0 In your answers below, show all amounts in thousands. Required a. Prepare the working paper to consolidate Perth and Sharbot's trial balances at December 31, 2020. b. Prepare the consolidated income statement for 2020, and the consolidated balance sheet at December 31, 2020, in good form. Alla 1Alat Dan TL... V LO 1, 2,4 P4.8 Required Determine Bowen's amortization expense and impairment write-offs for 2020, following U.S. GAAP. Consolidation After Four Years On January 1, 2017, Perth Company acquired all of Sharbot Com pany's voting stock for $16 million in cash. Some of Sharbot's identifiable assets at the date of acquisition had fair values that were different from reported values, as follows: Chapter 4 - Consolidated Financial Statements Subsequent to Acquisition (in millions) Fair value Plant assets, net (20-year remaining life, straight-line) Identifiable intangibles (5-year remaining life, straight-line). Book value $11 0 $ 3 10 Sharbot's total shareholders'equity at January 1, 2017, was S4 million. It is now December 31, 2020 (four years later). Cumulative impairment for the goodwill recognized on this acquisition, to the beginning of 2020, is $2 million. Goodwill impairment for 2020 is $0.5 million. Perth uses the complete equity method to account for its investment in Sharbot on its own books. December 31, 2020 trial balances for Perth and Sharbot appear below. (in thousands) Perth Company Dr (Cr) Sharbot Company Dr (Cr) $ 2,500 28,000 $ 5,000 34,800 Current assets Plant assets, net. Intangibles Investment in Sharbot Liabilities. Capital stock Retained earnings, Jan. 1. Sales revenue............ Equity in net income of Sharbot. Cost of sales. ... Operating expenses. Total .. 23,600 (22,000) (15,000) (25,000) (25,000) (400) 20,000 4,000 $ 0 (10,000) (2,000) (16,000) (14,000) 8,000 3,500 0 In your answers below, show all amounts in thousands Required a. Prepare the working paper to consolidate Perth and Sharbot's trial balances at December 31, 2020. b. Prepare the consolidated income statement for 2020, and the consolidated balance sheet at December 31, 2020, in good form. alan fann walatan IA Consolidation After Four Years On January 1, 2017, Perth Company acquired all of Sharbati pany voting stock for $16 million in cash. Some of Sharbot's identifiable assets at the date of acquista The Rewind Determine Bowen's amortization expense and impairment write- LO 1, 2,4 P4.8 had fair values that were different from reported values, as follows: Puant assets, net (20-year remaining wife, straight-line) Identifiable intangibles (5-year remaining life, straight-line) Sharbor total shareholders equity at January 1, 2017, was $4 million. It is now December 31, 2020 (four years later), Cumulative impairment for the goodwill recognized on this acquisition, to the beginning of Chapter 4 Consolidated Financial Statements Subsequent to Acquisition 177 in millions) Fair value $ 3 10 Book value $11 0 2020. is $2 million. Goodwill impairment for 2020 is S05 million. Perth uses the complete equity method to account for its investment in Sharbot on its own books. December 31, 2020 trial balances for Perth and Sharbot appear below. Perth Company Dr (CH) Sharbot Company Dr (Cr) $ 5,000 34.800 $ 2,500 28.000 (in thousands) Current assets Plant assets, net. Intangibles. Investment in Sharbot Liabilities. Capital stock Retained earnings, Jan. 1. . Sales revenue. Equity in net income of Sharbot... Cost of sales.. Operating expenses. Total 23,600 (22,000) (15,000) (25,000) (25,000) (400) 20,000 4,000 $ 0 (10,000) (2.000) (16,000) (14,000) 8,000 3,500 $ 0 In your answers below, show all amounts in thousands. Required a. Prepare the working paper to consolidate Perth and Sharbot's trial balances at December 31, 2020. b. Prepare the consolidated income statement for 2020, and the consolidated balance sheet at December 31, 2020, in good form. Alla 1Alat Dan TL... V LO 1, 2,4 P4.8 Required Determine Bowen's amortization expense and impairment write-offs for 2020, following U.S. GAAP. Consolidation After Four Years On January 1, 2017, Perth Company acquired all of Sharbot Com pany's voting stock for $16 million in cash. Some of Sharbot's identifiable assets at the date of acquisition had fair values that were different from reported values, as follows: Chapter 4 - Consolidated Financial Statements Subsequent to Acquisition (in millions) Fair value Plant assets, net (20-year remaining life, straight-line) Identifiable intangibles (5-year remaining life, straight-line). Book value $11 0 $ 3 10 Sharbot's total shareholders'equity at January 1, 2017, was S4 million. It is now December 31, 2020 (four years later). Cumulative impairment for the goodwill recognized on this acquisition, to the beginning of 2020, is $2 million. Goodwill impairment for 2020 is $0.5 million. Perth uses the complete equity method to account for its investment in Sharbot on its own books. December 31, 2020 trial balances for Perth and Sharbot appear below. (in thousands) Perth Company Dr (Cr) Sharbot Company Dr (Cr) $ 2,500 28,000 $ 5,000 34,800 Current assets Plant assets, net. Intangibles Investment in Sharbot Liabilities. Capital stock Retained earnings, Jan. 1. Sales revenue............ Equity in net income of Sharbot. Cost of sales. ... Operating expenses. Total .. 23,600 (22,000) (15,000) (25,000) (25,000) (400) 20,000 4,000 $ 0 (10,000) (2,000) (16,000) (14,000) 8,000 3,500 0 In your answers below, show all amounts in thousands Required a. Prepare the working paper to consolidate Perth and Sharbot's trial balances at December 31, 2020. b. Prepare the consolidated income statement for 2020, and the consolidated balance sheet at December 31, 2020, in good form. alan fann walatan IA
