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please show me all calculaction steps Pea Corporation purchased 75 percent of the outstanding voting stock of Sen Corporation for $2,400,000 on January 1, 2011.
please show me all calculaction steps
Pea Corporation purchased 75 percent of the outstanding voting stock of Sen Corporation for $2,400,000 on January 1, 2011. Sen's stockholders equity on this date consisted of the following (in thousands): Capital stock, $10 par $1.000 Additional paid-in capital 600 Retained earnings December 31, 800 2010 Total stockholders' equity $2400 The excess fair value of the net assets acquired was assigned 10 percent to undervalued inventory (sold in 2011). 40 percent to undervalued plant assets with a remaining useful life of eight years, and 50 percent to goodwill Comparative trial balances of Pea Corporation and Sen Corporation at December 31, 2015, are as follows: Pea Sen Other assets-net $3,765 $2.600 Investment in Sen-75% 2.340 Expenses (including cost of 3,185 600 sales) Dividends 500 200 $9.790 $3400 $3.000 $1,000 Capital stock. $ 10 par 850 600 Additional paid-in capital 1,670 800 Retained earnings 4,000 Sales 270 Income from Sen Et 1.000 Other assets-net Pea ation at December 31, 2015, are as follows: Sen $2,600 Investment in Sen-75% Expenses (including cost of sales) Dividends $3,765 2,340 3,185 600 500 $9.790 $3,000 200 $3.400 $1,000 850 600 Capital stock, $10 par Additional paid-in capital Retained earnings Sales Income from Sen 1.670 800 1.000 4,000 270 $9.790 $3.400 The amount of Consolidated retained earnings at December 31, 2015 that would appear in the consolidated financial statements of Pea Corporation and Subsidiary at December 31, 2015: a. $2.255 b. $1,670 c. $2,170 d. $2,470 Step by Step Solution
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