QUESTION 2 Not complete Marked out of 8.00 Rag question Consolidation subsequent to date of acquisition- Equity method with noncontrolling interest and AAP Assume that, on anuary 1, 2013, a parent company acquired a 90% interest in its subsidiary. The total fair value of the controlling and noncontrolling interests was s480 000 over the book value of the subsidiary's Stockholders Equity on the acquisition date. The parent assigned the excess fair value to the following [A] assets: A] Asset Initial Fair Value Useful Life (years) Initial Useful Fair Value Property, plant and equipment (PPE), net 160,000 80,000 40,000 [A] Asset Life (years) Patent Customer list Goodwill 10 10 200,000 Indefinite 5480,000 90% of the Goodwill is allocated to the parent. The parent and the subsidiary report the following financial statements at December 31, 2016: Parent Subsidi Parent Subsidiary Income statement: Sales Cost of goods sold Gross profit Income (loss) from subsidiary82,800 Operating expenses Net income Balance sheet $6,800,000 880,000 Cash 5320,000 5228,000 0,000 200,000 720,000 264,000 (5,200,000) 528,000) Accounts receivable 600,000352000 Inventory Equity investment 982,800 280.000) (240000) Property, plant and equipment (PPE). net600,000 600,000 402,800 112.000 $4102,800 $1,292,000 QUESTION 2 Not complete Marked out of 8.00 Rag question Consolidation subsequent to date of acquisition- Equity method with noncontrolling interest and AAP Assume that, on anuary 1, 2013, a parent company acquired a 90% interest in its subsidiary. The total fair value of the controlling and noncontrolling interests was s480 000 over the book value of the subsidiary's Stockholders Equity on the acquisition date. The parent assigned the excess fair value to the following [A] assets: A] Asset Initial Fair Value Useful Life (years) Initial Useful Fair Value Property, plant and equipment (PPE), net 160,000 80,000 40,000 [A] Asset Life (years) Patent Customer list Goodwill 10 10 200,000 Indefinite 5480,000 90% of the Goodwill is allocated to the parent. The parent and the subsidiary report the following financial statements at December 31, 2016: Parent Subsidi Parent Subsidiary Income statement: Sales Cost of goods sold Gross profit Income (loss) from subsidiary82,800 Operating expenses Net income Balance sheet $6,800,000 880,000 Cash 5320,000 5228,000 0,000 200,000 720,000 264,000 (5,200,000) 528,000) Accounts receivable 600,000352000 Inventory Equity investment 982,800 280.000) (240000) Property, plant and equipment (PPE). net600,000 600,000 402,800 112.000 $4102,800 $1,292,000