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On July 1, 2018, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of $753,900 in cash and equity securities.

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On July 1, 2018, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of $753,900 in cash and equity securities. The remaining 30 percent of Atlanta's shares traded closely near an average prike that totaled $323100 both before and after Truman's acquisition In reviewing its acquisition, Truman assigned a $109,000 fair value to a patent recently developed by Atlanta, even though it was not recorded within the financial records of the subsidiary. This patent is anticipated to have a remaining life of five years. The following financial information is available for these two companies for 2018. In addition, the subsidiary's income was earned uniformly throughout the year. The subsidiary declared dividends quarterly $ $ Revenues Operating expenses Income of subsidiary Truman (716, 080) 427,000 (45,92e) (335.000) Atlanta (498,000) 345,000 Net Income $ (153.000) $ 508,000) (153,000) 60,000 (601,000) 414,000 $ 5 Retained earnings, 1/1/18 Net Income (above) Dividends declared Retained earnings, 12/31/18 Current assets Investment in Atlanta Land Buildings Total assets Liabilities Common stock Additional paid-in capital Retained earnings, 12/31/18 Total liabilities and stockholders' equity $ (905,000) (335,000) 175,000 $(1,065,000) 593,180 278,82e 389.000 207.000 $ 2,468,000 $ (903,000) (95,600) (405,000) (1,065,000) $ (2,468,000) 219,000 676,000 $1,309,000 $ (388,000) (380, eee) (20, 000) (601,000) $ (1,309,000) a. How did Truman allocate Atlanta's acquisition date fair value to the various assets acquired and liabilities assumed in the combination? b. How did Truman allocate the goodwill from the acquisition across the controlling and noncontrolling interests? c. How did Truman derive the Investment in Atlanta account balance at the end of 2018? d. Prepare a worksheet to consolidate the financial statements of these two companies as of December 31, 2018 At year-end, there were no intra-entity receivables or payables. a. How did Truman allocate Atlanta's acquisition date fair value to the various assets acquired and liabilities assumed in the combination? b. How did Truman allocate the goodwill from the acquisition across the controlling and noncontrolling interests? c. How did Truman derive the Investment in Atlanta account balance at the end of 2018? d. Prepare a worksheet to consolidate the financial statements of these two companies as of December 31, 2018 At year-end, there were no intra-entity receivables or payables. eBook Complete this question by entering your answers in the tabs below. Required A Required B Required c Required D How did Truman allocate Atlanta's acquisition date fair value to the various assets acquired and liabilities assumed in the combination? References Consideration transferred by Truman Noncontrolling interest fair value Atlanta's acquisition date total fair value Book value of Atlanta Fair value in excess of book value Excess fair value assigned Patent Goodwill Required B > a. How did Truman allocate Atlanta's acquisition date fair value to the various assets acquired and liabilities assumed in the combination? b. How did Truman allocate the goodwill from the acquisition across the controlling and noncontrolling interests? c. How did Truman derive the Investment in Atlanta account balance at the end of 2018? d. Prepare a worksheet to consolidate the financial statements of these two companies as of December 31, 2018 At year-end, there were no intra entity receivables or payables Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D How did Truman allocate the goodwill from the acquisition across the controlling and noncontrolling interests? Controlling Noncontrolling Interest interest Goodwill Required A Required B Required Required D References How did Truman derive the Investment in Atlanta account balance at the end of 2018? Initial value at acquisition date Truman's share of Atlanta's net income for half year Dividends 2018 Investment account balance 12/31/18 Consolidation Worksheet For Year Ending December 31, 2018 Truman Atlanta Consolidation Entries Company Company Debit Credit $ (716,080) S (498,000) 427,000 345,000 (45,920) S (335,000) $ (153,000) Noncontrolling Consolidated Interest Totals Revenues Operating expenses Net income of subsidiary Separate company net income Consolidated net income Net income attributable to NCI Net income attributable to Truman Retained earnings, 1/1 Net income Dividends declared Retained earnings 12/31 (905,000) $ (335,000) 175,000 S (1,065,000) $ (508,000) (153,000) 60,000 (601,000) 414,000 593,1805 778,820 389,000 707,000 219,000 676,000 Current assets Investment in Atlanta Land Buildings Patent Goodwill Total assets Liabilities Common stock Additional paid in capital Retained earnings 12/31 Noncontrolling interest 7/1 Noncontrolling interest 12/31 Total liabilities and equity LITT LRT TUTTI $ $ $ $ 2,468,000 (903,000) (95,000) (405,000) (1,065,000) UNUNUNNNN 1,309,000 (388,000) (300,000) (20.000) (601,000) X LIIIII JO $ (2,468,000) S S (1,309,000) On July 1, 2018, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of $753,900 in cash and equity securities. The remaining 30 percent of Atlanta's shares traded closely near an average prike that totaled $323100 both before and after Truman's acquisition In reviewing its acquisition, Truman assigned a $109,000 fair value to a patent recently developed by Atlanta, even though it was not recorded within the financial records of the subsidiary. This patent is anticipated to have a remaining life of five years. The following financial information is available for these two companies for 2018. In addition, the subsidiary's income was earned uniformly throughout the year. The subsidiary declared dividends quarterly $ $ Revenues Operating expenses Income of subsidiary Truman (716, 080) 427,000 (45,92e) (335.000) Atlanta (498,000) 345,000 Net Income $ (153.000) $ 508,000) (153,000) 60,000 (601,000) 414,000 $ 5 Retained earnings, 1/1/18 Net Income (above) Dividends declared Retained earnings, 12/31/18 Current assets Investment in Atlanta Land Buildings Total assets Liabilities Common stock Additional paid-in capital Retained earnings, 12/31/18 Total liabilities and stockholders' equity $ (905,000) (335,000) 175,000 $(1,065,000) 593,180 278,82e 389.000 207.000 $ 2,468,000 $ (903,000) (95,600) (405,000) (1,065,000) $ (2,468,000) 219,000 676,000 $1,309,000 $ (388,000) (380, eee) (20, 000) (601,000) $ (1,309,000) a. How did Truman allocate Atlanta's acquisition date fair value to the various assets acquired and liabilities assumed in the combination? b. How did Truman allocate the goodwill from the acquisition across the controlling and noncontrolling interests? c. How did Truman derive the Investment in Atlanta account balance at the end of 2018? d. Prepare a worksheet to consolidate the financial statements of these two companies as of December 31, 2018 At year-end, there were no intra-entity receivables or payables. a. How did Truman allocate Atlanta's acquisition date fair value to the various assets acquired and liabilities assumed in the combination? b. How did Truman allocate the goodwill from the acquisition across the controlling and noncontrolling interests? c. How did Truman derive the Investment in Atlanta account balance at the end of 2018? d. Prepare a worksheet to consolidate the financial statements of these two companies as of December 31, 2018 At year-end, there were no intra-entity receivables or payables. eBook Complete this question by entering your answers in the tabs below. Required A Required B Required c Required D How did Truman allocate Atlanta's acquisition date fair value to the various assets acquired and liabilities assumed in the combination? References Consideration transferred by Truman Noncontrolling interest fair value Atlanta's acquisition date total fair value Book value of Atlanta Fair value in excess of book value Excess fair value assigned Patent Goodwill Required B > a. How did Truman allocate Atlanta's acquisition date fair value to the various assets acquired and liabilities assumed in the combination? b. How did Truman allocate the goodwill from the acquisition across the controlling and noncontrolling interests? c. How did Truman derive the Investment in Atlanta account balance at the end of 2018? d. Prepare a worksheet to consolidate the financial statements of these two companies as of December 31, 2018 At year-end, there were no intra entity receivables or payables Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D How did Truman allocate the goodwill from the acquisition across the controlling and noncontrolling interests? Controlling Noncontrolling Interest interest Goodwill Required A Required B Required Required D References How did Truman derive the Investment in Atlanta account balance at the end of 2018? Initial value at acquisition date Truman's share of Atlanta's net income for half year Dividends 2018 Investment account balance 12/31/18 Consolidation Worksheet For Year Ending December 31, 2018 Truman Atlanta Consolidation Entries Company Company Debit Credit $ (716,080) S (498,000) 427,000 345,000 (45,920) S (335,000) $ (153,000) Noncontrolling Consolidated Interest Totals Revenues Operating expenses Net income of subsidiary Separate company net income Consolidated net income Net income attributable to NCI Net income attributable to Truman Retained earnings, 1/1 Net income Dividends declared Retained earnings 12/31 (905,000) $ (335,000) 175,000 S (1,065,000) $ (508,000) (153,000) 60,000 (601,000) 414,000 593,1805 778,820 389,000 707,000 219,000 676,000 Current assets Investment in Atlanta Land Buildings Patent Goodwill Total assets Liabilities Common stock Additional paid in capital Retained earnings 12/31 Noncontrolling interest 7/1 Noncontrolling interest 12/31 Total liabilities and equity LITT LRT TUTTI $ $ $ $ 2,468,000 (903,000) (95,000) (405,000) (1,065,000) UNUNUNNNN 1,309,000 (388,000) (300,000) (20.000) (601,000) X LIIIII JO $ (2,468,000) S S (1,309,000)

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