Simple Trial Balance Consolidation Working Paper, First and Second Years On January 1, 2019 Pacnet Communications acquired
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Simple Trial Balance Consolidation Working Paper, First and Second Years
On January 1, 2019 Pacnet Communications acquired all the stock of SecureWorks Inc. at a cost of $40,000,000 in cash. The $34,000,000 excess of acquisition cost over book value was allocated as fllows:
Plant Assets(5,000,000)10 year life straight line
Identifiable Intangibles Assets2,000,0005 Years life, straight line
Goodwill37,000,000Impairment loss 2019:1,000,000; Impairment Loss in 2020: 1,500,000
Total: 34,000,000
Both companies have December 31 year ends. Trial Balances of Pacnet and Secure works at December 31,2019 and 2020 appear below. Pacnet uses the complete equity method to report its investment in SecureWorks on its own books.
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