Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Using parent concept with detailed numbers please Assume the balance sheet of (B) company for the year ended on December 31, 2018 prior to business
Using parent concept with detailed numbers please
Assume the balance sheet of (B) company for the year ended on December 31, 2018 prior to business combination was as follows: Explanation Carrying value Fair value Assets Cash 35000 Receivable 7000 8000 Inventories 15000 20000 Land 33000 50000 Buildings 80000 70000 Total assets 170000 Liabilities and stockholders' equity Payables 32000 30000 Common Stock 88000 Paid in capital 30000 Retained Earnings 20000 Total Liabilities and stockholders' equity 170000 (A) Company paid JD120000 for 75% of net assets of (B). And here below the carrying and fair value of some accounts of assets of company (A): Explanations 1 Carrying value Fair value Receivable 15000 18000 Inventories 10000 8000 Land 35000 40000 Buildings 100000 110000 Required: Using economic and parent concepts, determine the balances of the following accounts in the consolidated financial statements. Receivable, inventories, land, buildings, investment in (B), goodwill, payable, non-controllable interestStep 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