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The individual financial statements for Abbey Company and Bellstar Company for the year ending December 3 1 , 2 0 2 4 , follow. Abbey
The individual financial statements for Abbey Company and Bellstar Company for the year ending December follow. Abbey acquired a percent interest in Bellstar on January in exchange for various considerations totaling $ At the acquisition date, the fair value of the noncontrolling interest was $ and Bellstar's book value was $ Bellstar had developed internally a trademark that was not recorded on its books but had an acquisitiondate fair value of $ This intangible asset is being amortized over years. Abbey uses the partial equity method to account for its investment in Bellstar. Abbey sold Bellstar land with a book value of $ on January for $ Bellstar still holds this land at the end of the current year. Bellstar regularly transfers inventory to Abbey. In it shipped inventory costing $ to Abbey at a price of $ During intraentity shipments totaled $ although the original cost to Bellstar was only $ In each of these years, percent of the merchandise was not resold to outside parties until the period following the transfer. Abbey owes Bellstar $ at the end of Note: Parentheses indicate a credit balance. Prepare a worksheet to consolidate the separate financial statements for Abbey and Bellstar. How would the consolidation entries in requirement a have differed if Abbey had sold a building on January with a $ book value cost of $ to Bellstar for $ instead of land, as the problem reports? Assume that the building had a year remaining life at the date of transfer.
The individual financial statements for Abbey Company and Bellstar Company for the year ending December follow. Abbey
acquired a percent interest in Bellstar on January in exchange for various considerations totaling $ At the
acquisition date, the fair value of the noncontrolling interest was $ and Bellstar's book value was $ Bellstar had
developed internally a trademark that was not recorded on its books but had an acquisitiondate fair value of $ This
intangible asset is being amortized over years. Abbey uses the partial equity method to account for its investment in Bellstar.
Abbey sold Bellstar land with a book value of $ on January for $ Bellstar still holds this land at the end of the
current year.
Bellstar regularly transfers inventory to Abbey. In it shipped inventory costing $ to Abbey at a price of $ During
intraentity shipments totaled $ although the original cost to Bellstar was only $ In each of these years,
percent of the merchandise was not resold to outside parties until the period following the transfer. Abbey owes Bellstar $ at
the end of
Note: Parentheses indicate a credit balance.
Prepare a worksheet to consolidate the separate financial statements for Abbey and Bellstar.
How would the consolidation entries in requirement a have differed if Abbey had sold a building on January with a $ book value cost of $ to Bellstar for $ instead of land, as the problem reports? Assume that the building had a year remaining life at the date of transfer.
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