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Please dont post the same (wrong) answer which was already posted by other. Thank you Use the following information for problems 1-4 On January 1,

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Please dont post the same (wrong) answer which was already posted by other. Thank you
Use the following information for problems 1-4 On January 1, 2012, Adams acquires 100% of Baker in a transacti the acquisition method. Adams will use equity accounting for its investmen d for Baker will remain a wholly owned subsidiary of Adams. The following is in n on account about this acquisition. To pay for this purchase, Adams issues 20,000 shares of common st S20 market value. Legal and accounting costs were $50,000. Stock issuanoe 20,000. If Baker has net income of $50,000 in 2012, Adams will pay an addits $100,000. At acquisition date there is a 40% probability of this occurring, ock with a Ss d The book value of net assets acquired of Baker was $200,000 at acquisition date. Adama was willing to pay in excess of book value to acquire Baker because Baker had a buildine (10 year life) with a book value of $300,000 and a fair value of $340,000. Baker has $40,000 in net income in 2012 and pays a dividend of $30,000. Adams has $100,000 of net income in 2012 and pays a dividend of $70,000. Prepare an investment analysis at date of acquisition, including the following: a. Calculate the amount debited to the investment b. Calculate the premium over book value c. Determine the amount of goodwill or if it is a bargain purchase. d. How much is the excess depreciation that will be reflected as consolidation 1. entry E in 2012? 2. How much are consolidated dividends in 2012? At December 31,2014 assume Adams has Buildings with a book value of $500,000 and fair value of $600,000 and Baker has Buildings with a boo of $400,000 and a fair value of $450,000. a. What is the CONSOLIDATED total for buildings at that date?chee b. Prepare jounatentey"A" that will show up on the consolidated wor 3. of December 31, 2014. How much is consolidated Equity Income in 2012 worksheet as 4. rb

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