Question
Use the following information to answer the next questions. On January 1, 2005, Finch Corporation purchased 75% of the common stock of Grass Co. Separate
Use the following information to answer the next questions.
On January 1, 2005, Finch Corporation purchased 75% of the common stock of Grass Co. Separate balance sheet data for the companies at the combination date are given below:
..............Finch .......Grass
Cash $ 34,000 .......$ 206,000
Accounts Receivable 144,000 ......26,000
Inventory 132,000 ........38,000
Land 68,000...... 32,000
Plant assets 700,000 .........300,000
Accum. Depreciation ( 240,000 )....... ( 60,000 )
Investment in Lapp 392,000
Total assets $ 1,230,000 .........$ 542,000
Accounts payable $ 206,000 .......$ 142,000
Capital stock 800,000 .........300,000
Retained earnings 224,000 .........100,000
Total liabilities & equities $ 1,230,000...... $ 542,000
At the date of combination, the book values of Grasss net assets were equal to the fair value except for Grasss inventory, which had a fair value of $60,000. Determine below what the consolidated balance would be for each of the requested accounts.
1) What amount of Goodwill will be reported? 2) What is the reported amount for the non-controlling interest? 3) What is the amount of total assets? |
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