Problem! ? Number of shares acquired Purchase price per share Fair value per share at Dec 31, 20X2 Useful life of the automobiles Useful life of the equipment Useful life of the patent Subsidiary's net income in 20X1 Subsidiary's dividends in 20X1 Tax rate Tax depreciation Estimated tax payment NUU 7.7 8.3 5 10 10 41,400 4,100 30.00% 23,900 6,000 Payment Change Subsidiary's note receivable December 31, 20X0 December 31, 20X1 December 31, 20X2 December 31, 20X3 December 31, 20X4 36,181.400 36,181.400 36,181.400 36,181.403 Interest 5.10% 0,528 5,015.676 3.426.224 1.755.71 29,653 403 -31,165,7265 -32,755.178 -34425692 Balance 128.000 98.346 597 67.180.8711 34,425 692 Payment Change Subsidiary's note payable December 31, 20X0 December 31, 20X1 December 31, 20X2 December 31, 20X3 December 31, 20X4 December 31, 20X5 35.279.282 55.279.282 Interest 4.60% 11,132 9.101.223 6.977014 4,755.131 2,431.02 44,1722 46,178057 -48 102 248 -50.524.151 52 84 262 Balance 242,000 197.852.718 151.674661 103,372,413 52.84562 8.00355E-11 55.279.282 Subsidiary Balance Sheet December 31, 20X0 Cash Excess Book Value 48,700 Fair Value 48,700 64,500 64,500 Accounts receivable Other current assets Automobiles 248,600 248,600 106,2001 67,000 -24,0001 Accumulated depreciation Equipment Accumulated depreciation 187.000 190.000 0 Nole receivable 43.0001 128.0001 59.0001 123,000 77,000 Patent Goodwill Total 775.000 59,800 59,800 59,300 59,3001 242,000 220,000 Accounts payable Salarios payable Note payable Common stock (si par value) Adelitial paid in capital Retained earnings Total 68,000 249,900 96,0001 775,000 Prebe! Parent Company income Smart for the year anded December 2012 Sales 327.300 Dividend in Undan Income to Subsidiary Cost of goods sold Salary expense Depre 124.400 134.400 104.700 1040 sense 500 300 Unexpense 3630 2200 Pestice Netcome Parent Company Statement of an ang for the year ended December 31 Beginning balance Fair Vw 35500 Ety 5 Net income Dividende declared Endg ta v Parent Can Balance Sheet As of December 21, 2017 and 2X2 XI Fan Canon 14.000 9.500 20. Invertory 17.00 11.200 1 11 166, 166,100 Land Equipment Accuero 14.50 295.000 255.00 45.000 - nements in ry 53.650 S 500 50.500 Apayat Beste 9400 400 Tes payable Din patie Deferred as payable. Depreciation Deferred as payable Invest Deferred as ativity method 50 13410 TIRSO 11 92.5 104.2001 ox200 Commons Additional in capital 13700 13,90 Rendere 55,500 Problem 1 Fair Value Method (determine balances below as of December 31, 20X2) Investments Deferred taxes payable - Investment Deferred taxes payable - Depreciation Operating cash flow Equity Method (determine balances below as of December 31, 20X2) Investment in Subsidiary Taxes payable Deferred taxes payable - Equity method Operating cash flow Problem! ? Number of shares acquired Purchase price per share Fair value per share at Dec 31, 20X2 Useful life of the automobiles Useful life of the equipment Useful life of the patent Subsidiary's net income in 20X1 Subsidiary's dividends in 20X1 Tax rate Tax depreciation Estimated tax payment NUU 7.7 8.3 5 10 10 41,400 4,100 30.00% 23,900 6,000 Payment Change Subsidiary's note receivable December 31, 20X0 December 31, 20X1 December 31, 20X2 December 31, 20X3 December 31, 20X4 36,181.400 36,181.400 36,181.400 36,181.403 Interest 5.10% 0,528 5,015.676 3.426.224 1.755.71 29,653 403 -31,165,7265 -32,755.178 -34425692 Balance 128.000 98.346 597 67.180.8711 34,425 692 Payment Change Subsidiary's note payable December 31, 20X0 December 31, 20X1 December 31, 20X2 December 31, 20X3 December 31, 20X4 December 31, 20X5 35.279.282 55.279.282 Interest 4.60% 11,132 9.101.223 6.977014 4,755.131 2,431.02 44,1722 46,178057 -48 102 248 -50.524.151 52 84 262 Balance 242,000 197.852.718 151.674661 103,372,413 52.84562 8.00355E-11 55.279.282 Subsidiary Balance Sheet December 31, 20X0 Cash Excess Book Value 48,700 Fair Value 48,700 64,500 64,500 Accounts receivable Other current assets Automobiles 248,600 248,600 106,2001 67,000 -24,0001 Accumulated depreciation Equipment Accumulated depreciation 187.000 190.000 0 Nole receivable 43.0001 128.0001 59.0001 123,000 77,000 Patent Goodwill Total 775.000 59,800 59,800 59,300 59,3001 242,000 220,000 Accounts payable Salarios payable Note payable Common stock (si par value) Adelitial paid in capital Retained earnings Total 68,000 249,900 96,0001 775,000 Prebe! Parent Company income Smart for the year anded December 2012 Sales 327.300 Dividend in Undan Income to Subsidiary Cost of goods sold Salary expense Depre 124.400 134.400 104.700 1040 sense 500 300 Unexpense 3630 2200 Pestice Netcome Parent Company Statement of an ang for the year ended December 31 Beginning balance Fair Vw 35500 Ety 5 Net income Dividende declared Endg ta v Parent Can Balance Sheet As of December 21, 2017 and 2X2 XI Fan Canon 14.000 9.500 20. Invertory 17.00 11.200 1 11 166, 166,100 Land Equipment Accuero 14.50 295.000 255.00 45.000 - nements in ry 53.650 S 500 50.500 Apayat Beste 9400 400 Tes payable Din patie Deferred as payable. Depreciation Deferred as payable Invest Deferred as ativity method 50 13410 TIRSO 11 92.5 104.2001 ox200 Commons Additional in capital 13700 13,90 Rendere 55,500 Problem 1 Fair Value Method (determine balances below as of December 31, 20X2) Investments Deferred taxes payable - Investment Deferred taxes payable - Depreciation Operating cash flow Equity Method (determine balances below as of December 31, 20X2) Investment in Subsidiary Taxes payable Deferred taxes payable - Equity method Operating cash flow