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Thu tSum Mon HAPTER 4, INTERCOMPANY TRANSACTIONS: Problem 2. On January 1, 2019, 100% of the outstanding stock 0 was purchased by Dell Alienware's net
Thu tSum Mon HAPTER 4, INTERCOMPANY TRANSACTIONS: Problem 2. On January 1, 2019, 100% of the outstanding stock 0 was purchased by Dell Alienware's net assets equaled $2,900,000. The excess was 16-year life. The following trial balances of Dell Computer Corpor MERCHANDISE, PLANT ASSETS AND NOTES Computer Company for $3,100,000 At that time, the book f Alienware Corporation value of ment with a attributable to equipr ation were prepared on December 31, 2019 and Alienware 30 POINTS Dell Computer Company and Alienware Cerporatien Trisi Dalance Dell Computer Alenware 380,000 Acounts Receivable 600,000 4,000 000 2.300,000 3,510,00o Property. Plant and Equipment (Net Investment in Aberware Accounts Payable Common Stock ($10 Par) Del Paid in Capital in Excess of Par Dell Retained Eanings -Del Common Stock (S10 Par)- Alienware Paid in Capital in Excess of Par Alienware Retained Eamings Alierware (95.00 00000) 5,400,000) 1400,000) 200,000) 2,300,000) 12000 000) 1,500,000) 7,000,000 1.150,000 30,000 Costs of Goods Sold Other Expenses 4000,000 320,000) Subsidiary Income Totals Throughout 2019, sales to Dell Computer Company made up 40% of Alienware's revenue and produced a 25% gross profit rate. At year-end, Dell Computer Company had sold $450,000 of the goods purchased from Alienware Corporation and still owed Alienware $70,000. None of the Alienware's products were in Dell's January 1, 2019, beginning inventory 1. Prepare a Determination and Distribution of Excess Schedule. income statement and balance sheet of Dell Computer Company and its subsidiary for the year ended December 31, 2019
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