Homework Answers
The selected answers are correct.
Q3. There is a negative balance due to goodwill and hence no elimination of difference is necessary.
Option ,c. No elimination of difference is necessary.
Q4. Additional depreciation = 50,000/ 5 = $10,000
Option c, $10000
Add Answer to:
QUESTION 4 Refer to question 3. For the difference associated with Property ($50,000). This is due...
The difference between the implied value and the book value of the company is calculated to be $200,000. Per review of...
The difference between the implied value and the book value of the company is calculated to be $200,000. Per review of the financial information provided by the company, the difference relates to tangibles and intangibles. Tangibles – Inventory and Property in the amount of $40,000 and $60,000 respectively. The remaining difference is associated with goodwill. Assuming that the inventory has not been sold, what would be the elimination entry to allocate this total difference in year of acquisition: a. Dr....
On January 1, 20X9, Parker acquired 90% of Sanders for $200,000 plus $15,000 in acquisition costs. On the date of...
On January 1, 20X9, Parker acquired 90% of Sanders for $200,000 plus $15,000 in acquisition costs. On the date of acquisition, Sanders had the following balance sheet Sanders Company Balance Sheet January 1, 20x9 Assets Liabilities and Equity Accounts Receivable $40,000 Current Liabilities $110,000 100,000 100,000 Inventory 160,000 Bonds Payable 60,000 Common Stock, $1 par 150,000 Paid-in Capital (20,000) Retained Earnings 50,000 (10,000) 30,000 $460,000 Total Liabilities and Equity Land Buildings Accumulated Depreciation Equipment Accumulated Depreciation Goodwill Total Assets 50,000...
А AA EE EE Аавьссос Аавьссос Аавьс Аавьсс Аав 1 Normal No Spac... Heading 1 Heading...
А AA EE EE Аавьссос Аавьссос Аавьс Аавьсс Аав 1 Normal No Spac... Heading 1 Heading 2 Title Paragraph Styles 6 4. (20 pts) Gray Company purchased 100% of Orange Company on January 1, 2019 for $1,000,000 by issuing 100,000 shares of its $2 par common stock with a market value of $10 per share. The book value of Orange at the time was $800,000 with half of the excess attributed to goodwill and half attributed to undervalued equipment. There...
Consolidation Working Paper, Noncontrolling Interest, Intercompany Inventory Transactions Peninsula Industries and Seaport Company, an 85 percent...
Consolidation Working Paper, Noncontrolling Interest, Intercompany Inventory Transactions Peninsula Industries and Seaport Company, an 85 percent owned subsidiary, engage in extensive intercompany transactions involving raw material,component parts,and completed products. Peninsula acquired its interest in Seaport several years ago, at a cost of $24,575,000. At that time, Seaport's book value was $1,500,000 and the fair value of the noncontrolling interest in Seaport was $2,925,000. The excess of acquisition cost over book value was attributed to previously unrecorded indefinite-lived intangibles, valued at...
Answer question (b), do not copy others answer. (b) Determine the amount of goodwill that prover...
Answer question (b), do not copy others answer.
(b) Determine the amount of goodwill that prover should report
in its current financial statement.
P1-33 Goodwill Assigned to Multiple Reporting Units The fair values of assets and liabilities held by three reporting units and other information related to the reporting units owned by Prover Company are as follows: Reporting Unit Cash & Receivables Inventory Land Buildings Equipment Accounts Payable Fair Value of Reporting Unit Carrying Value of Investment Goodwill Included in...
23. Topic: Consolidation working paper, first year (16pts) Portobello Company bought all of Strata Company's voting...
23. Topic: Consolidation working paper, first year (16pts) Portobello Company bought all of Strata Company's voting stock on January 1, 2020 for $20,000. Fair value information on Strata's assets and liabilities at the date of acquisition is as follows: • Plant and equipment is overvalued by $5,000. P&E has a 10-year remaining life, straight-line. Previously unreported identifiable intangibles, meeting the criteria for capitalization, are valued a $7,000. These intangibles have indefinite lives, but testing reveals impairment of $800 in 2020....
PR Company pays $20,000 in cash and issues stock with a fair value of $50,000 to...
PR Company pays $20,000 in cash and issues stock with a fair value of $50,000 to acquire all of SX Corporation's stock. SX will be a subsidiary of PR. Balance sheet accounts just prior to the acquisition are as follows, in trial balance format: PR Company SX Corporation Book value Book value Fair value Dr (Cr) Dr (Cr) Dr (Cr) Current assets $12,000 $ 5,500 $ 7,300 Property, plant & equipment, net 108,000 12,000 9,500 Identifiable intangible assets 2,000 8,000...
BB Co., Inc. issues 1 Million of it $5 par value stock plus $5,000,000 in cash...
BB Co., Inc. issues 1 Million of it $5 par value stock plus $5,000,000 in cash to acquire 100% of the voting common stock in DD Corporation. On the date of acquisition BB stock is trading at $40 per share. BB will account for this business combination as a stock acquisition. Balance sheet information ($ in thousands) as of the date of acquisition is as follows: BB Co., Inc. Book Values Dr (Cr) DD Corp. Book Values Dr (Cr) Fair...
please show your work there is no additional information. peg 95 and 96 is a silmilar...
please show your work
there is no additional information. peg 95 and 96 is a silmilar
problem.
Name: Score: P Corp. acquired 80 percent of corps common quired 80 percent of S Corp's common shares on January 1, 2020 for $620,000 cash S Corp. will continue as a separate legal entity. Further examination of S Corp's balance sheet below provides book and fair values S Corporation's Balance Sheet (January 1, 2020) Cash and Receivables Inventories Land Buildings and Equipment (net)...
Consolidation at Date Acquisition, Ownership <100%, FMV>BV. Assume that a parent company acquires a 70% interest...
Consolidation at Date Acquisition, Ownership <100%, FMV>BV. Assume that a parent company acquires a 70% interest in a subsidiary for a purchase price of $1,078,000. The excess of total fair value of controlling and noncontrolling interests over book value is assigned to; a building (PPE net) that is worth $100,000 more than book value, an unrecorded patent valued at $200,000 and goodwill valued at $300,000. Goodwill is assigned proportionately to the controlling and noncontrolling interests. Prepare the consolidated balance sheet...
On January 1, 20X9, Parker acquired 90% of Sanders for $200,000 plus $15,000 in acquisition costs. On the date of acquisition, Sanders had the following balance sheet Sanders Company Balance Sheet January 1, 20x9 Assets Liabilities and Equity Accounts Receivable $40,000 Current Liabilities $110,000 100,000 100,000 Inventory 160,000 Bonds Payable 60,000 Common Stock, $1 par 150,000 Paid-in Capital (20,000) Retained Earnings 50,000 (10,000) 30,000 $460,000 Total Liabilities and Equity Land Buildings Accumulated Depreciation Equipment Accumulated Depreciation Goodwill Total Assets 50,000...
А AA EE EE Аавьссос Аавьссос Аавьс Аавьсс Аав 1 Normal No Spac... Heading 1 Heading 2 Title Paragraph Styles 6 4. (20 pts) Gray Company purchased 100% of Orange Company on January 1, 2019 for $1,000,000 by issuing 100,000 shares of its $2 par common stock with a market value of $10 per share. The book value of Orange at the time was $800,000 with half of the excess attributed to goodwill and half attributed to undervalued equipment. There...
Answer question (b), do not copy others answer.
(b) Determine the amount of goodwill that prover should report
in its current financial statement.
P1-33 Goodwill Assigned to Multiple Reporting Units The fair values of assets and liabilities held by three reporting units and other information related to the reporting units owned by Prover Company are as follows: Reporting Unit Cash & Receivables Inventory Land Buildings Equipment Accounts Payable Fair Value of Reporting Unit Carrying Value of Investment Goodwill Included in...
23. Topic: Consolidation working paper, first year (16pts) Portobello Company bought all of Strata Company's voting stock on January 1, 2020 for $20,000. Fair value information on Strata's assets and liabilities at the date of acquisition is as follows: • Plant and equipment is overvalued by $5,000. P&E has a 10-year remaining life, straight-line. Previously unreported identifiable intangibles, meeting the criteria for capitalization, are valued a $7,000. These intangibles have indefinite lives, but testing reveals impairment of $800 in 2020....
please show your work
there is no additional information. peg 95 and 96 is a silmilar
problem.
Name: Score: P Corp. acquired 80 percent of corps common quired 80 percent of S Corp's common shares on January 1, 2020 for $620,000 cash S Corp. will continue as a separate legal entity. Further examination of S Corp's balance sheet below provides book and fair values S Corporation's Balance Sheet (January 1, 2020) Cash and Receivables Inventories Land Buildings and Equipment (net)...
Most questions answered within 3 hours.
-
If R = R1L2/L3, what is the measurement error dR based on the
rules of error...
asked 36 seconds from now -
At equilibrium, the concentrations of N2(g),
O2 (g) and NO (g) in a sealed reaction vessel...
asked 14 seconds from now -
Find P(X-bar > 15.5)
n=81, Mean=15, SD=1
asked 34 minutes ago -
3. What percentage of search engine users don’t go to the next
page of search results?...
asked 18 minutes ago -
Since Tanya Martin retired, she has used income from her
investment in the Alger Mid Cap...
asked 25 minutes ago -
Determine the point estimate of the population proportion, the
margin of error for the following confidence...
asked 35 minutes ago -
How do you do this again? thanks in advance guys
Take as input 10 integers from...
asked 37 minutes ago -
A single-turn circular loop of wire of radius 5.0 cm lies in a
plane perpendicular to...
asked 35 minutes ago -
an engine manufacturer makes the claim that the engine they have
developed will, on each cycle...
asked 40 minutes ago -
20ml 0.1020M nitric acid is titrated with 0.1010M sodium hydroxide.
what is the volume of base...
asked 40 minutes ago -
Trucks in a delivery fleet travel a mean of 80 miles per day
with a standard...
asked 1 hour ago -
What social, political, and organizational behavior can
influence change in criminal justice agencies?
asked 1 hour ago