Question
Slim Corporations balance sheet at January 1, 20X7, reflected the following balances: Assets Liabilities & Stockholders Equity Cash & Receivables $ 92,000 Accounts Payable $
Slim Corporations balance sheet at January 1, 20X7, reflected the following balances: |
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Assets |
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| Liabilities & Stockholders Equity |
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Cash & Receivables |
| $ | 92,000 |
| Accounts Payable |
| $ | 24,000 |
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Inventory |
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| 131,000 |
| Income Taxes Payable |
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| 50,000 |
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Land |
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| 85,000 |
| Bonds Payable |
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| 286,000 |
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Buildings & Equipment (net) |
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| 484,000 |
| Common Stock |
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| 241,000 |
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| Retained Earnings |
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| 191,000 |
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Total Assets |
| $ | 792,000 |
| Total Liabilities & Stockholders Equity |
| $ | 792,000 |
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Ford Corporation entered into an active acquisition program and acquired 80 percent of Slims common stock on January 2, 20X7, for $452,000. The fair value of the noncontrolling interest at that date was determined to be $113,000. A careful review of the fair value of Slims assets and liabilities indicated the following: |
| Book Value | Fair Value | ||||||
Inventory |
| $ | 131,000 |
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| $ | 151,000 |
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Land |
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| 85,000 |
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| 75,000 |
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Buildings & Equipment (net) |
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| 484,000 |
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| 552,000 |
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Goodwill is assigned proportionately to Ford and the noncontrolling shareholders. |
Required: |
Compute the appropriate amount related to Slim to be included in the consolidated balance sheet immediately following the acquisition for each of the following items: |
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A. Inventory
B. Land
C. Buildings and Equipment (net)
D. Goodwill
E. Investment in Slim Corporation
F. Noncontrolling Interest
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