Question
On January 1, 20X6, Pumpkin Corporation acquired 70 percent of Spice Company's common stock for $210,000 cash. The fair value of the noncontrolling interest at
On January 1, 20X6, Pumpkin Corporation acquired 70 percent of Spice Company's common stock for $210,000 cash. The fair value of the noncontrolling interest at that date was determined to be $90,000. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition:
Pumpkin
Spice
Cash
50,000
15,000
Accounts Receivable
70,000
25,000
Inventory
30,000
20,000
Land
150,000
80,000
Buildings and Equipment
250,000
200,000
Less: Accumulated Depreciation
-70,000
-20,000
Investment in Spice Co.
210,000
Total Assets
690,000
320,000
Accounts Payable
40,000
10,000
Bonds Payable
150,000
40,000
Common Stock
300,000
90,000
Retained Earnings
200,000
180,000
Total Liabilities and Equity
690,000
320,000
At the date of the business combination, the book values of Spice's assets and liabilities approximated fair value except for inventory, which had a fair value of $30,000, and land, which had a fair value of $95,000.
1. what amount of total inventory will be reported in the consolidated balance sheet prepared immediately after the business combination?
2. what amount of goodwill will be reported in the consolidated balance sheet prepared immediately after the business combination?
3. what amount of total assets will be reported in the consolidated balance sheet prepared immediately after the business combination?
4.what amount of total liabilities will be reported in the consolidated balance sheet prepared immediately after the business combination?
5. Based on the preceding information, what amount will be reported as noncontrolling interest in the consolidated balance sheet prepared immediately after the business combination?
6. Based on the preceding information, what amount of consolidated retained earnings will be reported in the consolidated balance sheet prepared immediately after the business combination?
7. Based on the preceding information, what amount will be reported as total stockholders' equity in the consolidated balance sheet prepared immediately after the business combination
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