Question
The statements of financial position of Pork Co. and Barrel Ltd. on December 31, Year 2, are shown below: Pork Co. Barrel Ltd. Plant and
The statements of financial position of Pork Co. and Barrel Ltd. on December 31, Year 2, are shown below:
Pork Co. | Barrel Ltd. | ||||
Plant and equipment (net) | $ | 400,000 | $ | 270,000 | |
Investment in Barrel Ltd. | 329,000 | ||||
Inventory | 120,000 | 102,000 | |||
Accounts receivable | 45,000 | 48,000 | |||
Cash | 22,000 | 60,000 | |||
$ | 916,000 | $ | 480,000 | ||
Ordinary shares | $ | 260,000 | $ | 120,000 | |
Retained earnings | 200,000 | 180,000 | |||
Long-term debt | 240,000 | 108,000 | |||
Current liabilities | 216,000 | 72,000 | |||
$ | 916,000 | $ | 480,000 | ||
Pork acquired 70% of the outstanding shares of Barrel on December 30, Year 2, for $329,000. Direct costs of the acquisition amounted to $12,000. The carrying amounts of the net assets of Barrel approximated fair values except for plant and equipment, which had a fair value of $320,000.
Required:
(a) Prepare a consolidated statement of financial position at December 31, Year 2, under the fair value enterprise method.
(b) Calculate goodwill and non-controlling interest on the consolidated statement of financial position at December 31, Year 2, under the identifiable net assets method. (Omit $ sign in your response.)
Goodwill under identifiable net assets method | $ | |
NCI under identifiable net assets method | $ | |
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