Question
On January 1, 2007 Mining Corp. purchased 80% of the common stock of Glass Inc. for $6,400,000. At that time, Glass's fair value was $8,000,000
On January 1, 2007 Mining Corp. purchased 80% of the common stock of Glass Inc. for $6,400,000. |
At that time, Glass's fair value was $8,000,000 and its book value was $7,000,000. |
Mining determined that the fair value of Glass's identifiable net asset equaled their book value, |
except for an unrecorded customer list, worth $450,000, with a 10-year life. Any remaining |
excess fair value is allocated to goodwill. Mining uses the equity method. |
a) The allocation of excess fair value schedule at 1/1/2007
b) The allocation of goodwill to controlling and noncontrolling interests at 1/1/2007
c) The 12/31 allocation of consolidated net income to controlling and non controlling interest for 2007
d) The 12/31 balance in the Investment in Glass account and for the noncontrolling interest for each year
e) All necessary equity entries by Mining
f) All required consolidation entries
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