Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On January 1, 2016 a Syracuse, NY based company Lockheed, purchased 80% ownership in TCG, incorporated. The acquisition allowed Lockheed the ability to have control

image text in transcribed
image text in transcribed
image text in transcribed
On January 1, 2016 a Syracuse, NY based company Lockheed, purchased 80% ownership in TCG, incorporated. The acquisition allowed Lockheed the ability to have control over the very profitable TCG organization. Lockheed paid $1,504,500 in cash to acquire the necessary shares. The estimated fair value of the non-controlling interest on that date was $336,300. On the acquisition date, the general ledger of TCG showed the following net assets Common stock ($10 par) Paid-in capital in excess of par Retained earnings 265,500 354,000 708,000 1,327,500 Lockheed contracted with EY to determine the fair value of net assets for TCG, incorporated. The following is a summary of differences found: Book Value Fair Value Equipment, 10 year remaining life Land 318,600 265,500 460,200 300,900 Building, 20year reamining life269,040 375,240 It was decided that any remaining excess value was attributed to goodwill. Required: 1) 2) Prepare a value analysis and a determination and distribution of excess schedule for Lockheed's investment in TCG including a depreciation/amortization schedule. If necessary, prepare a goodwill allocation schedule. Prepare consolidation entries for Lockheed for the year ended December 31, 2018. For the fiscal year ended December 31, 2018, TCG reported net loss of $35,400 and paid dividends of $17,700. In addition, complete a consolidated worksheet for Lockheed and its subsidiary TCG as of December 31, 2018 showing all consolidated totals. A drafted worksheet has been provided to you. All inputs must be handwritten. Assume Lockheed changed their internal reporting method. Prepare consolidation entries for Lockheed for the year ended December 31, 2018, using the method indicated on the worksheet. Refer to requirement 2 for information pertaining to income and dividends. In addition, complete a consolidation worksheet for Lockheed and its subsidiary TCG as of December 31, 2018 showing all consolidation totals. A drafted worksheet has been provided to you. All inputs must be handwritten. 3)

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

Research Methods In Accounting

Authors: Malcolm Smith

6th Edition

1529779774, 978-1529779776

More Books

Students also viewed these Accounting questions

Question

What is the biggest challenge facing the organization?

Answered: 1 week ago

Question

undertake a thematic analysis of your data;

Answered: 1 week ago