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2. On January 1, 2012, Mace Co. acquired 75% of Lance Co.'s outstanding common stock. On...
2. Allen Co. held 80% of the common stock of Brewer Inc. and 40% of this...
2. Allen Co. held 80% of the common stock of Brewer Inc. and 40% of this subsidiary's convertible bonds. The following consolidated financial statements were for 2012 and 2013. 2012 $ 1,064.000 (714,000) ( 126,000) Revenues Cost of goods sold Depreciation and amortization Gain on sale of building Interest expense Non-controlling interest Net income to controlling interest 2013 $ 1,232.000 (756,000) (140,000) 28.000 ( 42.000) $ 15,400 $ 306,600 $ $ 42.000) 12.600 169,400 $ Retained earnings, January 1 Net...
On January 1, 2018, Pen Corporation acquired 75% of the outstanding common stock of Sen Company...
On January 1, 2018, Pen Corporation acquired 75% of the outstanding common stock of Sen Company for $450,000. Fair value of noncontrolling interest at the date of acquisition is $116,500. Sen’s stockholders’ equity on January 1, 2018, was as follows: Common stock, $20 par $200,000 Additional paid-in capital 100,000 Retained earnings 100,000 Accumulated OCI 25,000 Differences between book value and fair value of the identifiable net assets of Sen Company on January 1, 2018, were...
2. Allen Co. held 80% of the common stock of Brewer Inc. and 40% of this...
2. Allen Co. held 80% of the common stock of Brewer Inc. and 40% of this subsidiary's convertible bonds. The following consolidated financial statements were for 2012 and 2013. Revenues Cost of goods sold Depreciation and amortization Gain on sale of building Interest expense Non-controlling interest Net income to controlling interest 2012 2013 $ 1,064,000 $1,232,000 (714,000 (756,000) 126,000) 140,000) -0- 28.000 42.000 42.000 $ 12.600 $ 15.400 $ 169,400 $ 306,600 $ Retained earnings, January 1 Net income (from...
On January 1, 2018, Pride, Inc. acquired 80% of the outstanding voting common stock of Strong...
On January 1, 2018, Pride, Inc. acquired 80% of the outstanding voting common stock of Strong Corp. for $364,000. There is no active market for Stong's stock. Of this payment, $28,000 was allocated to equipment (with a five-year life) that had been undervalued on Stones books by $35,000. Any remaining excess was attributable to goodwill, which has not been impaired. As of December 31, 2018, before preparing the consolidated worksheet, the financial statements appeared as follows: Pride Inc Strong Corp...
3. Thomas Inc. had the following stockholders' equity accounts as of January 1, 2013: $ Preferred...
3. Thomas Inc. had the following stockholders' equity accounts as of January 1, 2013: $ Preferred stock-$90 par value, nonvoting and nonparticipating: 9% cumulative dividend Common stock - $25 par value Retained earnings 2,700,000 5,600,000 14,000,000 Kuried Co. acquired all of the voting common stock of Thomas on January 1, 2013, for $20,656,000. The preferred stock remained in the hands of outside parties and had a fair value of $3,060,000. A database valued at $656,000 was recognized and amortized over...
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...
On January 1, 2012, Aspen Company acquired 80 percent of Birch Company’s outstanding voting stock for...
On January 1, 2012, Aspen Company acquired 80 percent of Birch Company’s outstanding voting stock for $288,000. Birch reported a $300,000 book value and the fair value of the noncontrolling interest was $72,000 on that date. Also, on January 1, 2013, Birch acquired 80 percent of Cedar Company for $104,000 when Cedar had a $100,000 book value and the 20 percent noncontrolling interest was valued at $26,000. In each acquisition, the subsidiary’s excess acquisition-date fair over book value was assigned...
4. On January 1, 2009, Rand Corp, issued shares of its common stock to acquire all...
4. On January 1, 2009, Rand Corp, issued shares of its common stock to acquire all of the outstanding common stock of Spaulding Inc. Spaulding Inc's book value was only $140,000 at the time, but Rand Corp issued 12,000 shares having a par value of S1 per share and a fair value of $20 per share. Rand Corp was willing to convey these shares because it felt that buildings (10-year life) were undervalued on Ss records by $60,000 while equipment...
On January 1, 2020, Procise Corporation acquired 100 percent ofthe outstanding voting stock of GaugeRite...
On January 1, 2020, Procise Corporation acquired 100 percent of
the outstanding voting stock of GaugeRite Corporation for
$2,007,750 cash. On the acquisition date, GaugeRite had the
following balance sheet:Cash$87,000Accounts payable$196,000Accounts receivable176,000Long-term debt993,000Land738,000Common stock1,009,000Equipment (net)1,898,000Retained earnings701,000Total assets$2,899,000Total liabilities and equity$2,899,000At the acquisition date, the following allocation was
prepared:Fair value of consideration transferred$2,007,750Book value acquired1,710,000Excess fair value over book value297,750To in-process research and development$53,750To equipment (8-year remaining life)124,000177,750To goodwill (indefinite life)$120,000Although at acquisition date Procise had expected $53,750 in
future benefits...
EXCEL CASE 2 On January 1, 2017, Hi-Speed.com acquired 100 percent of the common stock of...
EXCEL CASE 2
On January 1, 2017, Hi-Speed.com acquired 100 percent of the
common stock of Wi-Free Co. for cash of $730,000. The consideration
transferred was allocated among Wi-Free’s net assets as
follows:
Page 151
Wi-Free fair value (cash paid by Hi-Speed)
$730,000
Book value of Wi-Free:
Common stock and additional paid-in capital (APIC)
$130,000
Retained earnings
370,000
500,000
Excess fair value over book value to
230,000
In-process R&D
$ 75,000
Computer software (overvalued)
(30,000)
Internet domain name
120,000
165,000
...
2. Allen Co. held 80% of the common stock of Brewer Inc. and 40% of this subsidiary's convertible bonds. The following consolidated financial statements were for 2012 and 2013. 2012 $ 1,064.000 (714,000) ( 126,000) Revenues Cost of goods sold Depreciation and amortization Gain on sale of building Interest expense Non-controlling interest Net income to controlling interest 2013 $ 1,232.000 (756,000) (140,000) 28.000 ( 42.000) $ 15,400 $ 306,600 $ $ 42.000) 12.600 169,400 $ Retained earnings, January 1 Net...
2. Allen Co. held 80% of the common stock of Brewer Inc. and 40% of this subsidiary's convertible bonds. The following consolidated financial statements were for 2012 and 2013. Revenues Cost of goods sold Depreciation and amortization Gain on sale of building Interest expense Non-controlling interest Net income to controlling interest 2012 2013 $ 1,064,000 $1,232,000 (714,000 (756,000) 126,000) 140,000) -0- 28.000 42.000 42.000 $ 12.600 $ 15.400 $ 169,400 $ 306,600 $ Retained earnings, January 1 Net income (from...
3. Thomas Inc. had the following stockholders' equity accounts as of January 1, 2013: $ Preferred stock-$90 par value, nonvoting and nonparticipating: 9% cumulative dividend Common stock - $25 par value Retained earnings 2,700,000 5,600,000 14,000,000 Kuried Co. acquired all of the voting common stock of Thomas on January 1, 2013, for $20,656,000. The preferred stock remained in the hands of outside parties and had a fair value of $3,060,000. A database valued at $656,000 was recognized and amortized over...
4. On January 1, 2009, Rand Corp, issued shares of its common stock to acquire all of the outstanding common stock of Spaulding Inc. Spaulding Inc's book value was only $140,000 at the time, but Rand Corp issued 12,000 shares having a par value of S1 per share and a fair value of $20 per share. Rand Corp was willing to convey these shares because it felt that buildings (10-year life) were undervalued on Ss records by $60,000 while equipment...
On January 1, 2020, Procise Corporation acquired 100 percent of
the outstanding voting stock of GaugeRite Corporation for
$2,007,750 cash. On the acquisition date, GaugeRite had the
following balance sheet:Cash$87,000Accounts payable$196,000Accounts receivable176,000Long-term debt993,000Land738,000Common stock1,009,000Equipment (net)1,898,000Retained earnings701,000Total assets$2,899,000Total liabilities and equity$2,899,000At the acquisition date, the following allocation was
prepared:Fair value of consideration transferred$2,007,750Book value acquired1,710,000Excess fair value over book value297,750To in-process research and development$53,750To equipment (8-year remaining life)124,000177,750To goodwill (indefinite life)$120,000Although at acquisition date Procise had expected $53,750 in
future benefits...
EXCEL CASE 2
On January 1, 2017, Hi-Speed.com acquired 100 percent of the
common stock of Wi-Free Co. for cash of $730,000. The consideration
transferred was allocated among Wi-Free’s net assets as
follows:
Page 151
Wi-Free fair value (cash paid by Hi-Speed)
$730,000
Book value of Wi-Free:
Common stock and additional paid-in capital (APIC)
$130,000
Retained earnings
370,000
500,000
Excess fair value over book value to
230,000
In-process R&D
$ 75,000
Computer software (overvalued)
(30,000)
Internet domain name
120,000
165,000
...
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