On June 30, 2018, Plaster, Inc., paid $924,000 for 80 percent of Stucco Company's outstanding stock. Plaster assessed the acquisition-date fair value of the 20 percent noncontrolling interest at $231,000. At acquisition date, Stucco reported the following book values for its assets and liabilities: Cash Accounts receivable Inventory Land Buildings Equipment Accounts payable $60,500 128,100 204,800 65,600 176,600 302,700 (35,300) On June 30, Plaster allocated the excess acquisition-date fair value over book value to Stucco's assets as follows Equipment (3-year remaining life) Database (10-year remaining life) $ 75,600 176,400 At the end of 2018, the following comparative (2017 and 2018) balance sheets and consolidated income statement were available Plaster, Inc. December 31, 2017 Consolidated December 31, 2018 Cash Accounts receivable (net) Inventory Land Buildings (net) Equipment (net) Database Total assets 43,300 364,500 417,900 302,100 246,700 1,812,500 0 3,187,000 $244,500 488,700 724,900 367,700 372,700 2,052,400 167,580 $ 4,418,480 PLASTER, INC., AND SUBSIDIARY STUCCO COMPANY Consolidated Income Statement For the Year Ended December 31, 2018 $ 1,226,200 Revenues Cost of goods sold Depreciation Database amortization Interest and other expenses Consolidated net income 742,80o 188,800 8,820 9,800950,220 $ 275,980 Additional Information for 2018 On December 1, Stucco paid a $40,800 dividend. During the year, Plaster paid $108,000 in dividends. During the year, Plaster issued $813,660 in long-term debt at par. . Plaster reported no asset purchases or dispositions other than the acquisition of Stucco Prepare a 2018 consolidated statement of cash flows for Plaster and Stucco. Use the indirect method of reporting cash flows from operating activities. (Negative amounts and amounts to be deducted should be indicated by a minus sign.) On June 30, 2018, Plaster, Inc., paid $924,000 for 80 percent of Stucco Company's outstanding stock. Plaster assessed the acquisition-date fair value of the 20 percent noncontrolling interest at $231,000. At acquisition date, Stucco reported the following book values for its assets and liabilities: Cash Accounts receivable Inventory Land Buildings Equipment Accounts payable $60,500 128,100 204,800 65,600 176,600 302,700 (35,300) On June 30, Plaster allocated the excess acquisition-date fair value over book value to Stucco's assets as follows Equipment (3-year remaining life) Database (10-year remaining life) $ 75,600 176,400 At the end of 2018, the following comparative (2017 and 2018) balance sheets and consolidated income statement were available Plaster, Inc. December 31, 2017 Consolidated December 31, 2018 Cash Accounts receivable (net) Inventory Land Buildings (net) Equipment (net) Database Total assets 43,300 364,500 417,900 302,100 246,700 1,812,500 0 3,187,000 $244,500 488,700 724,900 367,700 372,700 2,052,400 167,580 $ 4,418,480 PLASTER, INC., AND SUBSIDIARY STUCCO COMPANY Consolidated Income Statement For the Year Ended December 31, 2018 $ 1,226,200 Revenues Cost of goods sold Depreciation Database amortization Interest and other expenses Consolidated net income 742,80o 188,800 8,820 9,800950,220 $ 275,980 Additional Information for 2018 On December 1, Stucco paid a $40,800 dividend. During the year, Plaster paid $108,000 in dividends. During the year, Plaster issued $813,660 in long-term debt at par. . Plaster reported no asset purchases or dispositions other than the acquisition of Stucco Prepare a 2018 consolidated statement of cash flows for Plaster and Stucco. Use the indirect method of reporting cash flows from operating activities. (Negative amounts and amounts to be deducted should be indicated by a minus sign.)
