Number 50

Consolidation on date of acquisition-Equity method with noncontrolling interest and AAP Assume that a parent company acquires a 75% interest in its subsidiary for a purchase price of $855,000. The total fair value of the controlling and noncontrolling interests in the subsidiary is $1, 140,000 on the acquisition date. The excess of the purchase price over the book value of the subsidiary's Stockholders' Equity is assigned to an unrecorded Customer List that the parent values at $300,000 and the remainder to Goodwill in the amount of $200,000. The parent and the subsidiary report the following pre-consolidation balance sheets on the acquisition date: a. Prepare the consolidation entries on the acquisition date. b. Prepare the consolidation spreadsheet on the acquisition date. Consolidation on date of acquisition-Equity method with noncontrolling interest and AAP Assume that a parent company acquires a 90% interest in its subsidiary for a purchase price of $1, 584,000. The total fair value of the controlling and noncontrolling interests in the subsidiary is $1, 760,000 on the acquisition date. The excess of the purchase price over the book value of the subsidiary's Stockholders' Equity is assigned to an unrecorded Royalty Agreement with a fair value of $160,000. The parent and the subsidiary report the following pre-consolidation balance sheets on the acquisition Consolidation on date of acquisition-Equity method with noncontrolling interest and AAP Assume that a parent company acquires a 75% interest in its subsidiary for a purchase price of $855,000. The total fair value of the controlling and noncontrolling interests in the subsidiary is $1, 140,000 on the acquisition date. The excess of the purchase price over the book value of the subsidiary's Stockholders' Equity is assigned to an unrecorded Customer List that the parent values at $300,000 and the remainder to Goodwill in the amount of $200,000. The parent and the subsidiary report the following pre-consolidation balance sheets on the acquisition date: a. Prepare the consolidation entries on the acquisition date. b. Prepare the consolidation spreadsheet on the acquisition date. Consolidation on date of acquisition-Equity method with noncontrolling interest and AAP Assume that a parent company acquires a 90% interest in its subsidiary for a purchase price of $1, 584,000. The total fair value of the controlling and noncontrolling interests in the subsidiary is $1, 760,000 on the acquisition date. The excess of the purchase price over the book value of the subsidiary's Stockholders' Equity is assigned to an unrecorded Royalty Agreement with a fair value of $160,000. The parent and the subsidiary report the following pre-consolidation balance sheets on the acquisition