Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On July 1. 2021, Truman Company scquirsd o 70 percent intersst in Ationts Company in snchange for considerstion of 5773130 in ces? befcce and atter

image text in transcribed
image text in transcribed
image text in transcribed
On July 1. 2021, Truman Company scquirsd o 70 percent intersst in Ationts Company in snchange for considerstion of 5773130 in ces? befcce and atter Truman's acquieltion. In reviewing its acquisition, Truman assigned a 5146,500 falr value to a potent receriby developed by Astanta, even thosgh it wes not fecorded whthin the financial records of the subsidiary. This potent is antlipbted to have a reensining life of fore yoses. The following financial information is avalable for these two componies for 2021. in sddition, the subiliscys income was zarned uniformly throughoia the yese. The subsidiscy declared dividends quarteryy a. What is the excess fair-value assigned to patent and goodwill? 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 2021 ? d. Prepare a worksheet to consolidate the financial statements of these two companies as of December 31, 2021, At year-end, ther were no intra-entity recelvables or payables. On July 1. 2021, Truman Company scquirsd o 70 percent intersst in Ationts Company in snchange for considerstion of 5773130 in ces? befcce and atter Truman's acquieltion. In reviewing its acquisition, Truman assigned a 5146,500 falr value to a potent receriby developed by Astanta, even thosgh it wes not fecorded whthin the financial records of the subsidiary. This potent is antlipbted to have a reensining life of fore yoses. The following financial information is avalable for these two componies for 2021. in sddition, the subiliscys income was zarned uniformly throughoia the yese. The subsidiscy declared dividends quarteryy a. What is the excess fair-value assigned to patent and goodwill? 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 2021 ? d. Prepare a worksheet to consolidate the financial statements of these two companies as of December 31, 2021, At year-end, ther were no intra-entity recelvables or payables

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

Measurement And Internal Audit Operations

Authors: Andrew Fight

1st Edition

184112401X, 978-1841124018

More Books

Students also viewed these Accounting questions