Peace Corporation acquired 70 percent of the ownership of Symbol Company on January 1, 20X1. The fair value of the noncontrolling interest at acquisition was equal to its proportionate share of the fair value of the net assets of Symbol. The full amount of the differential at acquisition was attributable to buildings and equipment, which had a remaining useful life of eight years. Financial statement data for the two companies and the consolidated entity at December 31, 20X6, are as follows: Consolidated Entity PEACE CORPORATION AND SYMBOL COMPANY Balance Sheet Data December 31, 20X6 Peace Corporation Symbol Company $ 71, eee $ 55,00 62,000 129,90 184,000 410,000 230,000 (184,000) (114, eee) $126,000 149,00 225,000 700,000 (?) 5 ? Item Assets Cash Accounts Receivable Inventory Buildings & Equipment Less: Accumulated Depreciation Investment in Symbol Company Total Assets Liabilities & Equity Accounts Other Payables Notes Payable Common Stock Retained Earnings Noncontrolling Interest Total Liabilities & Equity ? $ 337,000 $ 93,000 $ 90,000 ? 254,000 124,00 176,500 $ 24,000 5,000 124,800 64, een 120,000 378,000 124,000 176,500 48. See $ ? $? $ 337,000 Consolidated Entity $ 649,00 PEACE CORPORATION AND SYMBOL COMPANY Income Statement Data For the Year Ended December 31, 20X6 Item Peace Corporation Symbol Company Sales $ 420,000 $ 264,000 Income fros Symbol Company 30.100 Total Income $ 450,100 $ 264,000 Cost of Goods Sold $ 310,000 $ 174,00 Depreciation Expense 24,000 29, Interest Expense 29,000 9,900 Other Expenses 26,00 15.00 Total Expenses $(389,000) $(228,800) Consolidated Net Income Income to Noncontrolling Interest Controlling Interest in Net Income $61,100 $ 35,200 $ 649,000 $ 435,800 54,800 45,400 48,400 5582.800 66,200 (5,100) $ 61,100 All unrealized profit on intercompany inventory sales on January 1, 20X6, were eliminated on Peace's books. All unrealized inventory profits at December 31, 20X6, were eliminated on Symbol's books. Assume Peace uses the fully adjusted equity method and that Peace does not make the optional depreciation consolidation worksheet entry. Required: a. For the buildings and equipment held by Symbol when Peace acquired it and still on hand on December 31, 20X6, by what amount had buildings and equipment increased in value from their acquisition to the date of combination with Peace? Increase in value $ 60.000 b. What amount should be reported as accumulated depreciation for the consolidated entity at December 31, 20X6 (assuming Peace does not make the optional accumulated depreciation consolidation entry)? Accumulated depreciation $ 343,000 c.if Symbol reported capital stock outstanding of $64.000 and retained earnings of $34,000 on January 1, 20X1. what amount did Peace pay to acquire its ownership of Symbol? Amount paid by Peace d. What balance does Peace report as its investment in Symbol at December 31, 20X6? Investment balance e. What amount of intercorporate sales of inventory occurred in 20X6? Intercorporate sales . What amount of unrealized inventory profit exists at December 31, 20X6? Unrealized inventory profit 9. Prepare the consolidation entry used in eliminating intercompany inventory sales during 20X6. (If no entry is required for a transaction/event, select "No journal entry required" In the first account field.) view transaction list Consolidation Worksheet Entries A > Record the entry to eliminate the intercompany inventory sales. Note: Enter debits before credits Entry Accounts Debit Credit Record entry Clear entry view consolidation entries h. What was the amount of unrealized inventory profit at January 1, 20X6? Unrealized inventory profit i. What balance in accounts receivable did Peace report at December 31, 20X6? Accounts receivable balance
