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On January 1, 2020, Smith E Enterprises (SEI) bought a 60% interest in Coffee Manufacturing, Inc. (CFE) for $16,000,000 cash. At that same time, the
On January 1, 2020, Smith E Enterprises (SEI) bought a 60% interest in Coffee Manufacturing, Inc. (CFE) for $16,000,000 cash. At that same time, the market value of the noncontrolling interest in CFE was $9,000,000 At the time of the acquisition, the book value of CFE's net assets was $16,970,000. Here is additional information about CFE's account balances at that date: Book value Fair Valves Land $1,700,000 $2,550,000 Building (seven-year remaining life) 2,700,000 3,400,000 Equipment (five-year remaining life) 3,700,000 3,300,000 Any unallocated portion of the purchase price was assigned to Goodwill, which is not impaired. For internal reporting purposes, SEI employs the equity method to account for this investment. Instructions: Prepare the consolidation worksheet for Sel and Subsidiary for the year ended December 31, 2020. You will probably need to do a number of computations before beginning the consolidation process. Enter those computations on the Computations tab so that the grader can review them. Show those computations in good form so that the grader can understand what you are doing. Be sure to adjust column widths and cell formats as necessary to properly display the information Enter the consolidation entries on the Entries tab. Be sure to identify each entry by putting the name of the entry on the line above the entry. Finish the consolidation process, first by posting the consolidation entries from the Entries tab to the Dec 31 2020 Worksheet tab, and then by posting the necessary columnar entries to the Noncontrolling terest column of the worksheet. Be sure to identify each consolidation entry posting by entering the letter of the related consolidation entry. The columnar entries, of course, do not need any identifiers. On January 1, 2020, Smith E Enterprises (SEI) bought a 60% interest in Coffee Manufacturing, Inc. (CFE) for $16,000,000 cash. At that same time, the market value of the noncontrolling interest in CFE was $9,000,000 At the time of the acquisition, the book value of CFE's net assets was $16,970,000. Here is additional information about CFE's account balances at that date: Book value Fair Valves Land $1,700,000 $2,550,000 Building (seven-year remaining life) 2,700,000 3,400,000 Equipment (five-year remaining life) 3,700,000 3,300,000 Any unallocated portion of the purchase price was assigned to Goodwill, which is not impaired. For internal reporting purposes, SEI employs the equity method to account for this investment. Instructions: Prepare the consolidation worksheet for Sel and Subsidiary for the year ended December 31, 2020. You will probably need to do a number of computations before beginning the consolidation process. Enter those computations on the Computations tab so that the grader can review them. Show those computations in good form so that the grader can understand what you are doing. Be sure to adjust column widths and cell formats as necessary to properly display the information Enter the consolidation entries on the Entries tab. Be sure to identify each entry by putting the name of the entry on the line above the entry. Finish the consolidation process, first by posting the consolidation entries from the Entries tab to the Dec 31 2020 Worksheet tab, and then by posting the necessary columnar entries to the Noncontrolling terest column of the worksheet. Be sure to identify each consolidation entry posting by entering the letter of the related consolidation entry. The columnar entries, of course, do not need any identifiers
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