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can someone explain ENTRY A?
On January 1, 2013, Macke, co. acquired 70% of Carper Inc....
1: On January 1, 2009, Vacker Co. acquired 70% of Carper Inc. by paying $650,000. This...
1: On January 1, 2009, Vacker Co. acquired 70% of Carper Inc. by paying $650,000. This included a $20,000 control premium. Carper reported common stock on that date of $420,000 with retained earnings of $252,000. A building was undervalued in the company's financial records by $28,000. This building had a ten-year remaining life. Copyrights of $80,000 were to be recognized and amortized over 20 years. Carper earned income and paid cash dividends as follows: NI Div Paid 2009 $105,000 $54,600...
3. On January 1, 2018, William Co. acquired 70% of Noah Inc. by paying $650,000. The...
3. On January 1, 2018, William Co. acquired 70% of Noah Inc. by paying $650,000. The fair value of the nontrolling interest was $270,000 on that day. Noah reported common stock on that date of $420,000 with retained earnings of $252,000. A building was undervalued on Noah's financial records by $28,000 This building had a ten-year remaining life. Unrecorded copyrights with fair values of $80,000 were to be recognized and amortized over 20 years. Noah earned income and paid cash...
Problem II. On January 1, 2017, Parent Co. acquired 80% of Sub Inc. by paying $800,000....
Problem II. On January 1, 2017, Parent Co. acquired 80% of Sub Inc. by paying $800,000. Non-controlling interest was valued at $200,000. Sub reported common stock on that date of $520,000 with retained earnings of $352,000. A building was undervalued in the company's financial records by $18,000. This building had a ten-year (10) remaining useful life. Copyrights of $80,000 were not recognized in the subsidiary's records and should be amortized over 20 years. Sub earned net income and paid cash...
7-On January 1, 2015, Shea Corporation acquired all of the outstanding common stock of Sophia's Stuff,...
7-On January 1, 2015, Shea Corporation acquired all of the outstanding common stock of Sophia's Stuff, Inc. for $2,500,000 cash. The excess of the acquisition price over book value of Sophia's Stuff's stockholders' equity consisted of the following: Equipment, 8-year life, overvalued by $400,000 Building, 10-year life, undervalued by $65,000 Goodwill, indefinite life, $240,000 Required: a. Compute the amount of the excess that will be allocated to building after completion of the December 31, 2018, consolidation worksheet. b. Compute the...
Tyler Company acquired all of Jasmine Company’s outstanding stock on January 1, 2016, for $244,700 in...
Tyler Company acquired all of Jasmine Company’s outstanding stock on January 1, 2016, for $244,700 in cash. Jasmine had a book value of only $169,500 on that date. However, equipment (having an eight-year remaining life) was undervalued by $61,600 on Jasmine’s financial records. A building with a 20-year remaining life was overvalued by $12,000. Subsequent to the acquisition, Jasmine reported the following: Net Income Dividends Declared 2016 $ 54,600 $ 10,000 2017 88,800 40,000 2018 38,000 20,000 In accounting for...
Assume that on January 1, 2013, an investor company acquired 100% of the outstanding voting common...
Assume that on January 1, 2013, an investor company acquired 100% of the outstanding voting common stock of an investee company. The following financial statement information is for the investor company and the investee company on January 1, 2013, prepared immediately before this transaction. Book Values Investor Investee Receivables & inventaries $150,000 $75,000 Land 300,000 150,000 Property & equipment 337,500 150,000 Total assets $787,500 $375,000 Liabilities $225,000 $120,000 Common stock ($2 par) 30,000 15,000 Additional paid-in capital 420,000 225,000 Retained...
On January 1, 2017, Palka, Inc., acquired 70 percent of the outstanding shares of Sellinger Company...
On January 1, 2017, Palka, Inc., acquired 70 percent of the outstanding shares of Sellinger Company for $1,290,800 in cash. The price paid was proportionate to Sellinger’s total fair value, although at the acquisition date, Sellinger had a total book value of $1,570,000. All assets acquired and liabilities assumed had fair values equal to book values except for a patent (six-year remaining life) that was undervalued on Sellinger’s accounting records by $264,000. On January 1, 2018, Palka acquired an additional...
On January 1, 2017, Palka, Inc., acquired 70 percent of the outstanding shares of Sellinger Company...
On January 1, 2017, Palka, Inc., acquired 70 percent of the outstanding shares of Sellinger Company for $1,613,500 in cash. The price paid was proportionate to Sellinger’s total fair value, although at the acquisition date, Sellinger had a total book value of $2,040,000. All assets acquired and liabilities assumed had fair values equal to book values except for a patent (six-year remaining life) that was undervalued on Sellinger’s accounting records by $255,000. On January 1, 2018, Palka acquired an additional...
C. Prepare worksheet entry "A" at December 31, 2013 (assume there is no goodwill). 1. Davis...
C. Prepare worksheet entry "A" at December 31, 2013 (assume there is no goodwill). 1. Davis acquires 100% of Ramos on January 1, 2009. Ramos will be operated as a separate subsidiary. Davis will use the equity method to account for its investment in Ramos. In 2013, Davis has net income of $400,000 and pays dividends of $100,000. Ramos has net income of $200,000 and pays dividends of $75,000. At acquisition date, Davis has a building with a book value...
On January 1, 2017, Palka, Inc., acquired 70 percent of the outstanding shares of Sellinger Company...
On January 1, 2017, Palka, Inc., acquired 70 percent of the outstanding shares of Sellinger Company for $1,277,500 in cash. The price paid was proportionate to Sellinger’s total fair value, although at the acquisition date, Sellinger had a total book value of $1,500,000. All assets acquired and liabilities assumed had fair values equal to book values except for a patent (six-year remaining life) that was undervalued on Sellinger’s accounting records by $315,000. On January 1, 2018, Palka acquired an additional...
3. On January 1, 2018, William Co. acquired 70% of Noah Inc. by paying $650,000. The fair value of the nontrolling interest was $270,000 on that day. Noah reported common stock on that date of $420,000 with retained earnings of $252,000. A building was undervalued on Noah's financial records by $28,000 This building had a ten-year remaining life. Unrecorded copyrights with fair values of $80,000 were to be recognized and amortized over 20 years. Noah earned income and paid cash...
Problem II. On January 1, 2017, Parent Co. acquired 80% of Sub Inc. by paying $800,000. Non-controlling interest was valued at $200,000. Sub reported common stock on that date of $520,000 with retained earnings of $352,000. A building was undervalued in the company's financial records by $18,000. This building had a ten-year (10) remaining useful life. Copyrights of $80,000 were not recognized in the subsidiary's records and should be amortized over 20 years. Sub earned net income and paid cash...
7-On January 1, 2015, Shea Corporation acquired all of the outstanding common stock of Sophia's Stuff, Inc. for $2,500,000 cash. The excess of the acquisition price over book value of Sophia's Stuff's stockholders' equity consisted of the following: Equipment, 8-year life, overvalued by $400,000 Building, 10-year life, undervalued by $65,000 Goodwill, indefinite life, $240,000 Required: a. Compute the amount of the excess that will be allocated to building after completion of the December 31, 2018, consolidation worksheet. b. Compute the...
Assume that on January 1, 2013, an investor company acquired 100% of the outstanding voting common stock of an investee company. The following financial statement information is for the investor company and the investee company on January 1, 2013, prepared immediately before this transaction. Book Values Investor Investee Receivables & inventaries $150,000 $75,000 Land 300,000 150,000 Property & equipment 337,500 150,000 Total assets $787,500 $375,000 Liabilities $225,000 $120,000 Common stock ($2 par) 30,000 15,000 Additional paid-in capital 420,000 225,000 Retained...
C. Prepare worksheet entry "A" at December 31, 2013 (assume there is no goodwill). 1. Davis acquires 100% of Ramos on January 1, 2009. Ramos will be operated as a separate subsidiary. Davis will use the equity method to account for its investment in Ramos. In 2013, Davis has net income of $400,000 and pays dividends of $100,000. Ramos has net income of $200,000 and pays dividends of $75,000. At acquisition date, Davis has a building with a book value...
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