Peace Corporation acquired 75 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 31,206, are as follows: II unrealized profit on intercompany inventory sales on January 1,206, were eliminated on Peace's books. All unrealized inventory brofits 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 31,206, by what amount had buildings and equipment increased in value from their acquisition to the date of combination with Peace? \begin{tabular}{|l|l|} \hline Increase in value & $ \\ \hline \end{tabular} b. What amount should be reported as accumulated depreciation for the consolidated entity at December 31,206 (assuming Peace does not make the optional accumulated depreciation consolidation entry)? Accumulated depreciation c. If Symbol reported capital stock outstanding of $60,000 and retained earnings of $30,000 on January 1 , 201, what amount did Peace pay to acquire its ownership of Symbol? d. What balance does Peace report as its investment in Symbol at December 31, 20X6? e. What amount of intercorporate sales of inventory occurred in 206? f. What amount of unrealized inventory profit exists at December 31,206? g. Prepare the consolidation entry used in eliminating intercompany inventory sales during 206. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Worksheet Entries Record the entry to eliminate the intercompany inventory sales. Note: Enter debits before credits. h. What was the amount of unrealized inventory profit at January 1,206? i. What balance in accounts receivable did Peace report at December 31,206 ? II unrealized profit on intercompany inventory sales on January 1,206, were eliminated on Peace's books. All unrealized inventory brofits 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. Peace Corporation acquired 75 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 31,206, are as follows: II unrealized profit on intercompany inventory sales on January 1,206, were eliminated on Peace's books. All unrealized inventory brofits 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 31,206, by what amount had buildings and equipment increased in value from their acquisition to the date of combination with Peace? \begin{tabular}{|l|l|} \hline Increase in value & $ \\ \hline \end{tabular} b. What amount should be reported as accumulated depreciation for the consolidated entity at December 31,206 (assuming Peace does not make the optional accumulated depreciation consolidation entry)? Accumulated depreciation c. If Symbol reported capital stock outstanding of $60,000 and retained earnings of $30,000 on January 1 , 201, what amount did Peace pay to acquire its ownership of Symbol? d. What balance does Peace report as its investment in Symbol at December 31, 20X6? e. What amount of intercorporate sales of inventory occurred in 206? f. What amount of unrealized inventory profit exists at December 31,206? g. Prepare the consolidation entry used in eliminating intercompany inventory sales during 206. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Worksheet Entries Record the entry to eliminate the intercompany inventory sales. Note: Enter debits before credits. h. What was the amount of unrealized inventory profit at January 1,206? i. What balance in accounts receivable did Peace report at December 31,206 ? II unrealized profit on intercompany inventory sales on January 1,206, were eliminated on Peace's books. All unrealized inventory brofits 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
