Can you show the work and also the journal entries. Also include NCI
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There is no error in the question solved. The calculation in consolidation worksheet is all correct
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Can you show the work and also the journal entries. Also include
NCI
I have this...
On January 1, 2017, Parent Co., acquired 100 percent of the common stock of Sub Co...
On January 1, 2017, Parent Co., acquired 100 percent of the common stock of Sub Co for $1,000,000 in cash. At that time, the building which had a remaining life of 20 years and was undervalued by 200,000 and they had a patent not recorded on their books of 100,000 with a remaining life of 10 years. Below is the relevant information for Parent Co. and Sub Co. Parent Co 12/31/18 Sub Co 12/31/16 Sub Co 13/31/17 Sub Co 13/31/18...
Assume that on 1/1/X0, a parent company acquires a 70% interest in its subsidiary for a price at ...
Assume that on 1/1/X0, a parent company acquires a 70% interest
in its subsidiary for a price at $480,000 over book value. The
excess is assigned as follows:
Asset
Fair Value
Useful Life
Patent
$320,000
8 years
Goodwill
160,000
Indefinite
70% of the goodwill is allocated to the parent.
Included in the attached Excel spreadsheet are the
pre-consolidation financial statements for both the parent and the
subsidiary.
Submission Requirements:
Prepare the consolidated financial statements at 12/31/X6 by
placing the appropriate...
ProForm acquired 60 percent of ClipRite on June 30, 2017, for $1,380,000 in cash. Based on ClipRi...
ProForm acquired 60 percent of ClipRite on June 30, 2017, for $1,380,000 in cash. Based on ClipRite's acquisition-date fair value, an unrecorded intangible of $700,000 was recognized and is being amortized at the rate of $21,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $920,000 at the acquisition date. The 2018 financial statements are as follows ProForm ClipRite Sales Cost of goods sold Operating expenses Dividend income (1,050,000 (1,100,000) 525,000 225,000...
On January 1, 2018, Strait Corp. purchased 100% of the outstanding common stock of Amarillo Company....
On January 1, 2018, Strait Corp. purchased 100% of the outstanding common stock of Amarillo Company. On the date of the acquisition, Amarillo’ identifiable net assets had fair values that approximated their recorded book values. The acquisition resulted in no goodwill. Strait Corp. uses the cost method to account for its investment in Amarillo Company. The following financial statement information is for Amarillo Company for the year ended December 31, 2019: 2019 2018 Revenues $100,000 $120,000 Expenses 47,000 65,000 Net...
On January 1, 2018, Strait Corp. purchased 100% of the outstanding common stock of Amarillo Company....
On January 1, 2018, Strait Corp. purchased 100% of the outstanding common stock of Amarillo Company. On the date of the acquisition, Amarillo’ identifiable net assets had fair values that approximated their recorded book values. The acquisition resulted in no goodwill. Strait Corp. uses the cost method to account for its investment in Amarillo Company. The following financial statement information is for Amarillo Company for the year ended December 31, 2019: 2019 2018 Revenues $100,000 $120,000 Expenses 47,000 65,000 Net...
4-On January 2, 2019, Moonshine, Inc. acquired Cambridge as a wholly-owned subsidiary, paying an excess of...
4-On January 2, 2019, Moonshine, Inc. acquired Cambridge as a wholly-owned subsidiary, paying an excess of $400,000 over the book value of Hudson's net assets. One-half of the excess was attributable to equipment with a 4-year life, leaving the remainder as goodwill. The parent uses the equity method of pre-consolidation Equity investment bookkeeping. The 2020 financial statements for the two companies are presented below. Moonshine, Inc. Cambridge Sales $2,500,000 $600,000 Cost of goods sold -1,800,000 -350,000 Gross profit 700,000 250,000...
The Holtz Corporation acquired 80 percent of the 100,000 outstanding voting shares of Devine, Inc., for...
The Holtz Corporation acquired 80 percent of the 100,000
outstanding voting shares of Devine, Inc., for $6.10 per share on
January 1, 2017. The remaining 20 percent of Devine’s shares also
traded actively at $6.10 per share before and after Holtz’s
acquisition. An appraisal made on that date determined that all
book values appropriately reflected the fair values of Devine’s
underlying accounts except that a building with a 5-year future
life was undervalued by $67,500 and a fully amortized trademark...
Plexi Company purchased 85% of the outstanding common stock of Senor Company on January 1, 2009...
Plexi Company purchased 85% of the outstanding common stock of Senor Company on January 1, 2009 for $57000. NOTE: COST METHOD USED BY PARENT Debit Jan. 1, 2009 Investment in Subsidiary-Sesnor 5,700,000 $ 5,700,000 The Sesnor Company balance aheet on 1/1/09 and 12/31/12 are as follows: Fair Value 120,000 $260,000 350,000 $ 450,000 1,275,000 $ 950,000 3,200,000 $ 3,450,000 1,000,000 1,000,000 250,000 120,000 $ 350,000 $1275,000 3,200,000 $2,500,000 Cash Accounts Receivable Net Plant Assets Other Assets $ 1,500,000 Total Assets...
On January 1, 2020, John Doe Enterprises (JDE) acquired a 55% interest in Tractors-R-Us Manufacturing, Inc....
On January 1, 2020, John Doe Enterprises (JDE) acquired a 55%
interest in Tractors-R-Us Manufacturing, Inc. (TMI). JDE paid for
the transaction with $3 million cash and 500,000 shares of JDE
common stock (par value $1.00 per share). At the time of the
acquisition, TMI's book value was $16,970,000.
On January 1, JDE stock has a market value of $14.90 per share
and there was no control premium in this transaction. Any
consideration transferred over book value is assigned to...
Huey Company acquires 100% of the stock of Solar Corporation on January 1, 2019, for $2,400,000...
Huey Company acquires 100% of the stock of Solar Corporation on January 1, 2019, for $2,400,000 cash. As of that date Solar had the following account balances: Book Value Fair value Cash $300,000 $300,000 Accounts receivable 325,000 325,000 Inventory 350,000 $400,000 Building-net (10 year life) 1,000,000 900,000 Equipment-net (5 year life) 300,000 400,000 Land 600,000 900,000 Accounts Payable 125,000 125,000 Bonds Payable (Face amount $1,000,000; due 12/31/2023) 2,000,000 2,050,000 Common stock 700,000 Additional paid-in capital 250,000 Retained earnings 880,000 In...
Assume that on 1/1/X0, a parent company acquires a 70% interest
in its subsidiary for a price at $480,000 over book value. The
excess is assigned as follows:
Asset
Fair Value
Useful Life
Patent
$320,000
8 years
Goodwill
160,000
Indefinite
70% of the goodwill is allocated to the parent.
Included in the attached Excel spreadsheet are the
pre-consolidation financial statements for both the parent and the
subsidiary.
Submission Requirements:
Prepare the consolidated financial statements at 12/31/X6 by
placing the appropriate...
ProForm acquired 60 percent of ClipRite on June 30, 2017, for $1,380,000 in cash. Based on ClipRite's acquisition-date fair value, an unrecorded intangible of $700,000 was recognized and is being amortized at the rate of $21,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $920,000 at the acquisition date. The 2018 financial statements are as follows ProForm ClipRite Sales Cost of goods sold Operating expenses Dividend income (1,050,000 (1,100,000) 525,000 225,000...
4-On January 2, 2019, Moonshine, Inc. acquired Cambridge as a wholly-owned subsidiary, paying an excess of $400,000 over the book value of Hudson's net assets. One-half of the excess was attributable to equipment with a 4-year life, leaving the remainder as goodwill. The parent uses the equity method of pre-consolidation Equity investment bookkeeping. The 2020 financial statements for the two companies are presented below. Moonshine, Inc. Cambridge Sales $2,500,000 $600,000 Cost of goods sold -1,800,000 -350,000 Gross profit 700,000 250,000...
The Holtz Corporation acquired 80 percent of the 100,000
outstanding voting shares of Devine, Inc., for $6.10 per share on
January 1, 2017. The remaining 20 percent of Devine’s shares also
traded actively at $6.10 per share before and after Holtz’s
acquisition. An appraisal made on that date determined that all
book values appropriately reflected the fair values of Devine’s
underlying accounts except that a building with a 5-year future
life was undervalued by $67,500 and a fully amortized trademark...
Plexi Company purchased 85% of the outstanding common stock of Senor Company on January 1, 2009 for $57000. NOTE: COST METHOD USED BY PARENT Debit Jan. 1, 2009 Investment in Subsidiary-Sesnor 5,700,000 $ 5,700,000 The Sesnor Company balance aheet on 1/1/09 and 12/31/12 are as follows: Fair Value 120,000 $260,000 350,000 $ 450,000 1,275,000 $ 950,000 3,200,000 $ 3,450,000 1,000,000 1,000,000 250,000 120,000 $ 350,000 $1275,000 3,200,000 $2,500,000 Cash Accounts Receivable Net Plant Assets Other Assets $ 1,500,000 Total Assets...
On January 1, 2020, John Doe Enterprises (JDE) acquired a 55%
interest in Tractors-R-Us Manufacturing, Inc. (TMI). JDE paid for
the transaction with $3 million cash and 500,000 shares of JDE
common stock (par value $1.00 per share). At the time of the
acquisition, TMI's book value was $16,970,000.
On January 1, JDE stock has a market value of $14.90 per share
and there was no control premium in this transaction. Any
consideration transferred over book value is assigned to...
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