Question
The individual financial statements for Gibson Company and Keller Company for the year ending December 31, 2015, follow. Gibson acquired a 60 percent interest in
The individual financial statements for Gibson Company and Keller Company for the year ending December 31, 2015, follow. Gibson acquired a 60 percent interest in Keller on January 1, 2014, in exchange for various considerations totaling $630,000. At the acquisition date, the fair value of the noncontrolling interest was $420,000 and Kellers book value was $840,000. Keller had developed internally a customer list that was not recorded on its books but had an acquisition-date fair value of $210,000. This intangible asset is being amortized over 20 years. Gibson sold Keller land with a book value of $55,000 on January 2, 2014, for $120,000. Keller still holds this land at the end of the current year.
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started