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Please answer all questions. Everything is given. No missing info. I will give you an upvote if you provide the correct answer. Mid - year
Please answer all questions. Everything is given. No missing info. I will give you an upvote if you provide the correct answer. Midyear acquisition
On Big acquired of Little's voting stock for $ The fair value of the NC Interest on that date was $
All of Little's assets and liabilities had fair values equal to book value, so any differential is ascribed to goodwill.
Little had the following trial balance on that date: Cash & Receivables
PPE
Liabilities
Common Stock
Retained earnings
Sales
Cost of goods sold
Other expenses
Dividends declared
By the end of the year, Little reported total annual earnings of $ and paid total annual dividends of $ The end of year trial balances, arranged in worksheet format, are below info, if not clear look at the picture inserted:
Big Little dr cr Consolidated
Sales
Less: COGS
Less: other expenses
Investment income
Net income
Less: Income to NC Interest
Income to controlling interest
Beginning RE
Add: Income
Less: Dividends
Ending RE
Cash and receivables
Investment in Little
PPE
Goodwill
Liabilities
CS
RE
NC Interest Questions: What is Little's book value aka "net assets" at acquisition?
How much goodwill is present?
What are the "post acquistion earnings" of Little?
What are the "post acqusition dividends" of Little?
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