{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-06-06T11:11:50-04:00", "answer_date": "2024-06-06 11:11:50", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "2361066", "url": "\/study-help\/questions\/on-january-3-2019-persoff-corporation-acquired-all-of-the-2361066", "question_creation_date_js": "2024-06-06T11:11:50-04:00", "question_creation_date": "Jun 06, 2024 11:11 AM", "meta_title": "[Solved] On January 3, 2019, Persoff Corporation a | SolutionInn", "meta_description": "Answer of - On January 3, 2019, Persoff Corporation acquired all of the outstanding voting stock of Sea Cliff, Inc., in exchange f | SolutionInn", "meta_keywords": "january,3,2019,persoff,corporation,acquired,outstanding,voting,stock,sea,cliff,inc.", "question_title_h1": "On January 3, 2019, Persoff Corporation acquired all of the outstanding voting stock of Sea Cliff, Inc., in exchange for $7,141,000 in cash. Persoff elected", "question_title": "On January 3, 2019, Persoff Corporation acquired all of the outstanding voting", "question_title_for_js_snippet": "On January 3, 2019, Persoff Corporation acquired all of the outstanding voting stock of Sea Cliff, Inc , in exchange for $7,141,000 in cash Persoff elected to exercise control over Sea Cliff as a wholly owned subsidiary with an independent accounting system Both companies have December 31 fiscal year ends At the acquisition date, Sea Cliff's stockholders' equity was $2,538,500 including retained earnings of $1,738,500 Persoff pursued the acquisition, in part, to utilize Sea Cliff's technology and computer software These items had fair values that differed from their values on Sea Cliff's books as follows Asset Patented technology Computer software Book Value $157,500 Fair Value $ 2,502,500 $ 70,500 $ 2,110,500 Remaining Useful Life years 12 years Sea Cliff's remaining identifiable assets and liabilities had acquisition date book values that closely approximated fair values Since acquisition, no assets have been impaired During the next three years, Sea Cliff reported the following income and dividends 2019 2020 2021 Net Income $ 900,700 940,700 975,700 Dividends $ 150,000 150,000 150,000 December 31, 2021, financial statements for each company follow Parentheses indicate credit balances Dividends declared were paid in the same period Income Statement Revenues Cost of goods sold Depreciation expense Amortization expense Persoff Sea Cliff $(2,285,000) $ (2,790,000) 1,384,300 292,500 391,000 883,300 394,000 32,000 (470,700) December 31, 2021, financial statements for each company follow Parentheses indicate credit balances Dividend in the same period Income Statement Revenues Cost of goods sold Depreciation expense Amortization expense Equity earnings in Sea Cliff Net income Statement of Retained Earnings Retained earnings 1 1 Net income (above) Dividends declared Retained earnings 12 31 Balance Sheet Current assets Investment in Sea Cliff Computer software Patented technology Goodwill Equipment Persoff Sea Cliff $(2,285,000) $ (2,790,000) 1,384,300 292,500 391,000 (470,700) $ (1,192,900) $ (7,505,000) (1,192,900) 600,000 883,300 394,000 32,000 0 $ (975,700) $(3,279,900) (975,700) 150,000 $(4,105,600) $ (8,097,900) $ 521,500 7,993,100 $ 392,500 0 335,000 55,500 Total assets Liabilities Common stock Retained earnings 12 31 Total liabilities and equity Note Parentheses indicate a credit balance 842,000 114,000 1,859,500 $ 11,665,100 $ (1,567,200) (2,000,000) (8,097,900) $(11,665,100) 94,000 0 4,570,000 $ 5,112,000 $ (206,400) (800,000) (4,105,600) $(5,112,000) Note Parentheses indicate a credit balance a Determine the fair value in excess of book value for Persoff's acquisition date investment in Sea Cliff b Determine Persoff's Equity earnings in Sea Cliff's balance for the year ended December 31, 2021 c Determine Persoff's December 31, 2021, Investment in Sea Cliff's balance d Prepare a worksheet to determine the consolidated values to be reported on Persoff's financial statements Answer is not complete Complete this question by entering your answers in the tabs below Required A Required B Required C Required D Determine Persoff's Equity earnings in Sea Cliff's balance for the year ended December 31, 2021 Amounts Equity earnings in Sea Cliff Note Parentheses indicate a credit balance a Determine the fair value in excess of book value for Persoff's acquisition date investment in Sea Cliff b Determine Persoff's Equity earnings in Sea Cliff's balance for the year ended December 31, 2021 c Determine Persoff's December 31, 2021, Investment in Sea Cliff's balance d Prepare a worksheet to determine the consolidated values to be reported on Persoff's financial statements Answer is not complete Complete this question by entering your answers in the tabs below Required A Required B Required C Required D Determine Persoff's December 31, 2021, Investment in Sea Cliff's balance Amounts Investment in Sea Cliff Consolidation Worksheet For Year December 31, 2021 Consolidation Entries Accounts Persoff Sea Cliff Debit Credit Consolidated Totals Income Statement $ Revenues $(2,790,000) (2 285,000) Cost of goods sold 1,384,300 883,300 Depreciation expense 292,500 394,000 Amortization expense 391,000 32,000 505,000 $ (5,075,000) ( 2,267,600 686,500 928,000 Equity earnings in Sea Cliff (470,700) 470,700 Net income $(1,192,900) $ (975,700) $ (1,192,900) Statement of Retained Earnings Retained earnings 1 1 (7,505,000) Net income (above) (1,192,900) Dividends declared 600,000 (3,279,900) (975,700) 150,000 3,279,900 150,000 $ Retained earnings 12 31 $(8,097,900) (4,105,600) (7,505,000) (1,192,900) 600,000 $ (8,097,900) Balance Sheet Current assets Investment in Sea Cliff Computer software Patented technology $ 521,500 $ 392,500 $ 914,000 7,993,100 150,000 335,000 55,500 1,700,000 170,000 1,920,500 842,000 94,000 1,675,000 335,000 2,276,000", "question_description": "\"image\"image\"image\"image\"image On January 3, 2019, Persoff Corporation acquired all of the outstanding voting stock of Sea Cliff, Inc., in exchange for $7,141,000 in cash. Persoff elected to exercise control over Sea Cliff as a wholly owned subsidiary with an independent accounting system. Both companies have December 31 fiscal year-ends. At the acquisition date, Sea Cliff's stockholders' equity was $2,538,500 including retained earnings of $1,738,500. Persoff pursued the acquisition, in part, to utilize Sea Cliff's technology and computer software. These items had fair values that differed from their values on Sea Cliff's books as follows: Asset Patented technology Computer software Book Value $157,500 Fair Value $ 2,502,500 $ 70,500. $ 2,110,500 Remaining: Useful Life years 12 years Sea Cliff's remaining identifiable assets and liabilities had acquisition-date book values that closely approximated fair values. Since acquisition, no assets have been impaired. During the next three years, Sea Cliff reported the following income and dividends: 2019 2020 2021 Net Income $ 900,700 940,700 975,700 Dividends $ 150,000 150,000 150,000 December 31, 2021, financial statements for each company follow. Parentheses indicate credit balances. Dividends declared were paid in the same period. Income Statement Revenues Cost of goods sold Depreciation expense Amortization expense Persoff Sea Cliff $(2,285,000) $ (2,790,000) 1,384,300 292,500 391,000 883,300 394,000 32,000 (470,700) December 31, 2021, financial statements for each company follow. Parentheses indicate credit balances. Dividend in the same period. Income Statement Revenues Cost of goods sold Depreciation expense Amortization expense Equity earnings in Sea Cliff Net income. Statement of Retained Earnings Retained earnings 1\/1 Net income (above) Dividends declared Retained earnings 12\/31 Balance Sheet Current assets Investment in Sea Cliff Computer software. Patented technology Goodwill Equipment Persoff Sea Cliff $(2,285,000) $ (2,790,000) 1,384,300 292,500 391,000 (470,700) $ (1,192,900) $ (7,505,000) (1,192,900) 600,000 883,300 394,000 32,000 0 $ (975,700) $(3,279,900) (975,700) 150,000 $(4,105,600) $ (8,097,900) $ 521,500 7,993,100 $ 392,500 0 335,000 55,500 Total assets Liabilities Common stock Retained earnings 12\/31 Total liabilities and equity Note: Parentheses indicate a credit balance. 842,000 114,000 1,859,500 $ 11,665,100 $ (1,567,200) (2,000,000) (8,097,900) $(11,665,100) 94,000 0 4,570,000 $ 5,112,000 $ (206,400) (800,000) (4,105,600) $(5,112,000) Note: Parentheses indicate a credit balance. a. Determine the fair value in excess of book value for Persoff's acquisition date investment in Sea Cliff. b. Determine Persoff's Equity earnings in Sea Cliff's balance for the year ended December 31, 2021. c. Determine Persoff's December 31, 2021, Investment in Sea Cliff's balance. d. Prepare a worksheet to determine the consolidated values to be reported on Persoff's financial statements. Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Determine Persoff's Equity earnings in Sea Cliff's balance for the year ended December 31, 2021. +Amounts Equity earnings in Sea Cliff Note: Parentheses indicate a credit balance. a. Determine the fair value in excess of book value for Persoff's acquisition date investment in Sea Cliff. b. Determine Persoff's Equity earnings in Sea Cliff's balance for the year ended December 31, 2021. c. Determine Persoff's December 31, 2021, Investment in Sea Cliff's balance. d. Prepare a worksheet to determine the consolidated values to be reported on Persoff's financial statements. Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Determine Persoff's December 31, 2021, Investment in Sea Cliff's balance. Amounts Investment in Sea Cliff Consolidation Worksheet For Year December 31, 2021 Consolidation Entries Accounts Persoff Sea Cliff Debit Credit + Consolidated Totals Income Statement $ Revenues $(2,790,000) (2.285,000) Cost of goods sold 1,384,300 883,300 Depreciation expense 292,500 394,000 Amortization expense 391,000 32,000 505,000 $ (5,075,000) ( 2,267,600 686,500 928,000 Equity earnings in Sea Cliff (470,700) 470,700 Net income $(1,192,900) $ (975,700) $ (1,192,900) Statement of Retained Earnings Retained earnings 1\/1 (7,505,000) Net income (above) (1,192,900) Dividends declared 600,000 (3,279,900) (975,700) 150,000 3,279,900 150,000 $ Retained earnings 12\/31 $(8,097,900) (4,105,600) (7,505,000) (1,192,900) 600,000 $ (8,097,900) Balance Sheet Current assets Investment in Sea Cliff Computer software Patented technology $ 521,500 $ 392,500 $ 914,000. 7,993,100 150,000 335,000 55,500 1,700,000 170,000 1,920,500 842,000 94,000 1,675,000 335,000 2,276,000", "transcribed_text": "", "related_book": { "title": "Financial Accounting and Reporting", "isbn": "978-0273744535, 273744445, 273744534, 978-0273744443", "edition": "14th Edition", "authors": "Barry Elliott, Jamie Elliott", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/168.jpg", "uri": "\/textbooks\/financial-accounting-and-reporting-14th-edition-168", "see_more_uri": "" }, "free_related_book": { "isbn": "1639018409", "uri": "\/textbooks\/tabe-11-and-12-consumable-student-math-workbook-for-level-d-1st-edition-978-1639018406-341545", "name": "Tabe 11 And 12 Consumable Student Math Workbook For Level D", "edition": "1st Edition" }, "question_posted": "2024-06-06 11:11:50", "see_more_questions_link": "\/study-help\/questions\/business-economics-2023-September-08", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/your-friend-is-frustrated-because-he-is-having-trouble-selecting", "description": "Your friend is frustrated because he is having trouble selecting a career. He says, I cant plan because the future is too complicated. Anything can happen, and there are too many choices. What would...", "stars": 3 }, { "url": "\/study-help\/international-financial-management\/ret-pty-ltd-a-south-african-company-is-seeking-an-1506127", "description": "RET (Pty) Ltd, a South African company, is seeking an international market. It decides to sell through the internet and prices its goods in rand. They argue that pricing goods in foreign currency...", "stars": 3 }, { "url": "\/study-help\/business-statistics-in-practice\/parameter-values-construct-a-runs-chart-for-the-following-weights-1982334", "description": "=+parameter values, construct a runs chart for the following weights of recent batches and comment on whether the process is in control. 18.03 18.00 18.12 17.81 18.23 18.11 18.23 18.19 18.00 18.05...", "stars": 3 }, { "url": "\/wilbur-company-has-the-following-items-a-freightin-b-purchase", "description": "Wilbur Company has the following items: (a) Freight-In, (b) Purchase Returns and Allowances, (c) Purchases, (d) Sales Discounts, (e) Purchase Discounts. Identify which items are included in goods...", "stars": 3 }, { "url": "\/study-help\/questions\/which-statement-s-below-accurately-describes-the-perceptron-9905837", "description": "Which statement ( s ) below accurately describes the Perceptron Learning Algorithm? Statement 1 : Threshold needs to be hand coded Statement 2 : Threshold can be learned Question 8 Answer a ....", "stars": 3 }, { "url": "\/study-help\/questions\/what-is-a-frame-choose-the-correct-answer-below-oa-2047086", "description": "What is a frame? Choose the correct answer below. OA. A frame is the population being studied. OB. A frame is a list of the individuals in the sample being studied. OC. A frame is a list of the...", "stars": 3 }, { "url": "\/study-help\/questions\/to-close-out-this-portfolio-project-you-will-reflect-on-3667952", "description": "To close out this Portfolio Project, you will reflect on the project as a whole. This reflection will be delivered orally in the format of a PowerPoint with voiceover, with a total recording length...", "stars": 3 }, { "url": "\/study-help\/questions\/your-friend-pablo-owns-company-called-essential-eats-ee-for-3614225", "description": "Your friend Pablo owns company called \"Essential Eats\" (EE for short). EE makes baked goods using a free community kitchen. Pablo sells them at a local weekly sport park meet up. The sports park...", "stars": 3 }, { "url": "\/study-help\/questions\/leaders-play-a-key-role-in-creating-a-work-culture-3603175", "description": "Leaders play a key role in creating a work culture that aligns with the overall organizational climate. As we learned in Chapter 5, four patterns of leadership shape the organizational climate and...", "stars": 3 }, { "url": "\/study-help\/questions\/jayda-a-former-sales-manager-has-been-out-of-the-3869814", "description": "Jayda, a former sales manager, has been out of the workforce for more than a decade and is thrilled when she lands a job at Mystic Visions Technology. For her first day at work, she dresses in a...", "stars": 3 }, { "url": "\/study-help\/questions\/representing-probability-distributions-activity-think-about-a-simple-games-fair-3763797", "description": "Representing Probability Distributions activity Think about a simple Games Fair game.The game must have a non-uniform probability distribution and 4 or more outcomes .Clearly describe the rules of...", "stars": 3 }, { "url": "\/study-help\/questions\/the-ancial-statement-that-shows-the-begang-balance-of-equity-7031271", "description": "The ancial statement that shows the begang balance of equity techngay that resulted from new vestes by the one tontonette and the ending balance of guy is the statement of financial position balance...", "stars": 3 }, { "url": "\/study-help\/intermediate-accounting-volume-2\/the-following-note-appears-in-the-summary-of-significant-accounting-1552374", "description": "The following note appears in the Summary of Significant Accounting Policies section of the Annual Report of Westinghouse Electric Corporation. Instructions (a) Identify the revenue recognition...", "stars": 3 }, { "url": "\/study-help\/intermediate-accounting-volume-2\/franchise-revenue-badger-burrito-inc-sells-franchises-to-independent-operators-1552375", "description": "(Franchise Revenue) Badger Burrito Inc. sells franchises to independent operators throughout the northwestern part of the United States. The contract with the franchisee includes the following...", "stars": 3 }, { "url": "\/study-help\/intermediate-accounting-volume-2\/the-cocacola-company-and-pepsico-inc-instructions-go-to-kww-1552373", "description": "The Coca-Cola Company and PepsiCo, Inc. Instructions Go to KWW website and use information found there to answer the following questions related to The Coca-Cola Company and PepsiCo, Inc. (a) What...", "stars": 3 } ], "next_back_navigation": { "previous": "\/study-help\/questions\/rollins-corp-can-obtain-a-fixed-rate-loan-at-710-2361065", "next": "\/study-help\/questions\/the-function-graphed-above-is-concave-up-on-the-intervals-2361067" }, "breadcrumbs": [ { "name": "Study help", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers" }, { "name": "Business", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers\/business" }, { "name": "Accounting", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/business-accounting" }, { "name": "On January 3, 2019, Persoff Corporation acquired all of the outstanding voting", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/on-january-3-2019-persoff-corporation-acquired-all-of-the-2361066" } ], "skill_details": { "skill_id": "9", "skill_name": "Accounting", "parent_id": "1" } }1" } }