in stock of software Global Outsourcing Corporatio Pred SOC SCOC25 Cash of earning con n cy the SGOC The ca year following of SCOC for a potential payout to the former shareholders of SGOC at the end of the third once sheet of SGO companies immediately prior to the acquisition are as follows. Fair at the date of ac tion are also provided SGOC Book Value Fair Value 10 130 Balance Sheets 30 Current assets Property, plant and op Intangible assets Total assets Current long-term Common stock par Additional paid in capital Retained earning Accumulated other comprehensive income 160 Treasury stock Total abilities and equity The intangible assets reported above consist of patents and trademarks. SGOC also has the following previously unreported intangible assets that meet FASB ASC Topic 805 requirements for asset recognition: Fair Value Advanced technology Customer lists 1 21 Assembled Workforce Future cost savings from eliminating duplicate assets Potential contracts with new customers In Process R&D Required w00 NN a. Prepare the journal entry or entries PITI makes to record the acquisition on its own books. (15 Points) b. Calculate the goodwill purchased in this acquisition. ( 20 points) c. Prepare the consolidation working paper eliminating entries needed to consolidate the balance sheets of PITI and SGOC at June 30, 2015 ( 15 points) in stock of software Global Outsourcing Corporatio Pred SOC SCOC25 Cash of earning con n cy the SGOC The ca year following of SCOC for a potential payout to the former shareholders of SGOC at the end of the third once sheet of SGO companies immediately prior to the acquisition are as follows. Fair at the date of ac tion are also provided SGOC Book Value Fair Value 10 130 Balance Sheets 30 Current assets Property, plant and op Intangible assets Total assets Current long-term Common stock par Additional paid in capital Retained earning Accumulated other comprehensive income 160 Treasury stock Total abilities and equity The intangible assets reported above consist of patents and trademarks. SGOC also has the following previously unreported intangible assets that meet FASB ASC Topic 805 requirements for asset recognition: Fair Value Advanced technology Customer lists 1 21 Assembled Workforce Future cost savings from eliminating duplicate assets Potential contracts with new customers In Process R&D Required w00 NN a. Prepare the journal entry or entries PITI makes to record the acquisition on its own books. (15 Points) b. Calculate the goodwill purchased in this acquisition. ( 20 points) c. Prepare the consolidation working paper eliminating entries needed to consolidate the balance sheets of PITI and SGOC at June 30, 2015 ( 15 points)
