Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On December 31, 20X9, Mickey Company acquired 80% of Minnie Corporation's common stock for $240,000. Balance sheet information for Minnie just prior to acquisition is

image text in transcribed
On December 31, 20X9, Mickey Company acquired 80% of Minnie Corporation's common stock for $240,000. Balance sheet information for Minnie just prior to acquisition is given here: Cash Inventory Land Buildings & Equipment, net Total Assets Accounts Payable Notes Payable Common Stock Retained Earnings Total Liabilities and Equity 35,000 75,000 100,000 220,000 430,000 65,000 150,000 100,000 115,000 430,000 At the date of business combination, Minnie's net assets and liabilities approximated fair value except for inventory, which had a fair value of $60,000, land which had a fair value of $125,000 and buildings & equipment which had a fair value of $250,000. 1. What amount of inventory will be included in the consolidated balance sheet? 2. What is the book value of Minnie Corporation? 3. What is the fair value of net identifiable assets in this transaction? 4. What amount of goodwill will be included in the consolidated balance sheet immediately following the acquisition? 5. What is the value of NCI in NA at acquisition? 6. What amount will be included as investment in Minnie in the consolidated balance sheet immediately following the acquisition

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Local Union Financial Records A Guide For Local Union Trustees

Authors: John Lund

1st Edition

0875461948, 978-0875461946

More Books

Students also viewed these Accounting questions

Question

b. Why were these values considered important?

Answered: 1 week ago