Problem $6-21($Algo$)$ Incomplete

Peace Corporation acquired $75$ percent of the ownership of Symbol Company on Jan Problem $6-21($Algo$)$ Incomplete Data LO $6-3,6-4$

Peace Corporation acquired $75$ percent of the ownership of Symbol Company on January $1,20$X$1.$ The fair value of the noncontrollingthe

differential at acquisition was attributable to buildings and equipment, which had a remaining useful life of eight years. Financial

statement dato for the two companies and the consolidated entity at December $31,20$X$6,$ are as follows:

All unrealized profit on intercompany inventory sales on January $1,206,$ were eliminated on Peace's books. All unrealized inventory

profits at December $31,20$X$6,$ 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 $31,20$X$6,$ by what amount

had buildings and equipment increased in value from their acquisition to the date of combination with Peace?

Increase in value

b$.$ What amount should be reported as accumulated depreciation for the consolidated entity at December $31,206($assuming Peace

does not make the optionsl accumulated deprecistion consolidation entry$)?$

$\backslash$table$[[$Accumulated depreciation,$$336,925]]$

c$.$ If Symbol reported capital stock outstanding of $$60,000$ and

Peace Corporation acquired $75$ percent of the ownership of Symbol Company on January $1,20$X$1.$ 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 $31,20$X$6,$ are as follows:

PEACE CORPORATION AND SYMBOL COMPANY

Balance Sheet Data

December $31,20$X$6$

Item Peace Corporation Symbol Company Consolidated Entity

Assets

Cash $ $94,000$ $ $72,000$ $ $166,000$

Accounts Receivable $?58,600154,000$

Inventory $129,50094,500220,900$

Buildings and Equipment $427,000267,000741,200$

Less: Accumulated Depreciation $(192,150)(122,375)(?)$

Investment in Symbol Company $?$

Total Assets $ $?$ $ $369,725$ $ $?$

Liabilities and Equity

Accounts Payable $ $90,500$ $ $25,400$ $ $98,000$

Other Payables $?12,500?$

Notes Payable $277,000138,000415,000$

Common Stock $120,00060,000120,000$

Retained Earnings $204,000139,000204,000$

Noncontrolling Interest $49,000$

Total Liabilities and Equity $ $?$ $ $369,725$ $ $?$

PEACE CORPORATION AND SYMBOL COMPANY

Income Statement Data

For the Year Ended December $31,20$X$6$

Item Peace Corporation Symbol Company Consolidated Entity

Sales $ $438,000$ $ $295,100$ $ $686,000$

Income from Symbol Company $34,500$

Total Income $ $472,500$ $ $295,100$ $ $686,000$

Cost of Goods Sold $ $323,500$ $ $183,500$ $ $454,000$

Depreciation Expense $29,00034,00068,900$

Interest Expense $34,00014,00048,000$

Other Expenses $31,00020,00051,000$

Total Expenses $ $(417,500)$ $ $(251,500)$ $ $(621,900)$

Consolidated Net Income $64,100$

Income to Noncontrolling Interest $(9,100)$

Controlling Interest in Net Income $ $55,000$ $ $43,600$ $ $55,000$

All unrealized profit on intercompany inventory sales on January $1,20$X$6,$ were eliminated on Peace$$s books. All unrealized inventory profits at December $31,20$X$6,$ were eliminated on Symbol$$s books. Assume Peace uses the fully adjusted equity method and that Peace does not make the optional depreciation consolidation worksheet entry.

Required:

For the buildings and equipment held by Symbol when Peace acquired it and still on hand on December $31,20$X$6,$ by what amount had buildings and equipment increased in value from their acquisition to the date of combination with Peace?

What amount should be reported as accumulated depreciation for the consolidated entity at December $31,20$X$6($assuming Peace does not make the optional accumulated depreciation consolidation entry$)?$

If Symbol reported capital stock outstanding of $$60,000$ and retained earnings of $$30,000$ on January $1,20$X$1,$ what amount did Peace pay to acquire its ownership of Symbol?

What balance does Peace report as its investment in Symbol at December $31,20$X$6?$

What amount of intercorporate sales of inventory occurred in $20$X$6?$

What amount of unrealized inventory profit exists at December $31,20$X$6?$

Prepare the consolidation entry used in eliminating intercompany inventory sales during $20$X$6.$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

What was the amount of unrealized inventory profit at January $1,20$X$6?$

What balance in accounts receivable did Peace report at December $31,20$X$6?$