Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please please please please help!!!! i have no idea what to do and am feeling stressed. On January 1, 2023, Panther, Incorporated, issued securities with
please please please please help!!!! i have no idea what to do and am feeling stressed.
On January 1, 2023, Panther, Incorporated, issued securities with a total fair value of $579,000 for 100 percent of Stark Corporation's outstanding ownership shares. Stark has long supplied inventory to Panther. The companies expect to achieve synergies with production scheduling and product development with this combination. Although Stark's book value at the acquisition date was $301,000, the fair value of its trademarks was assessed to be $47,000 more than their carrying amounts. Additionally. Stark's patented technology was undervalued in its accounting records by $231,000. The trademarks were considered to have indefinite lives, and the estimated remaining life of the patented technology was eight years. In 2023, Stark sold Panther inventory costing $65,000 for $130,000. As of December 31, 2023, Panther had resold 63 percent of this inventory. In 2024, Panther bought from Stark $142,000 of inventory that had an original cost of $71,000. At the end of 2024, Panther held $38,500 (transfer price) of inventory acquited from $ tark, all from its 2024 purchases. During 2024, Panther sold Stark a parcel of land for $89,200 and recorded a gain of $16,200 on the sale. Stark still owes Panther $62,800 (current liability) related to the land sale. At the end of 2024, Panther and Stark prepared the following statements for consolidation. Required: a. Show how Panther computed its $50,025 equity in Stark's earnings balance. b. Prepare a 2024 consolidated worksheet for Panther and Stark. Complete this question by entering your answers in the tabs below. Show how Panther computed its $50,025 equity in Stark's eamings balance. PANTHER AND STARK Consolidation Worksheet For the Year Ending December 31, 2024 Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started