Homework Answers
1. Consolidated Buildings(Net):
Polar Inc. Book Value: 501000
Icecap Book Value: 220000
Less: Removal of gain created by transfer: (42000)
Add: Additional Depreciation charged on transferred building: 16800
Consolidated Buildings (Net): 695800
2. Consolidated Operating Expenses:
Polar Inc. 210000
Icecap 147000
Less: Excess Depreciation charged on transferred building: (16800)
Consolidated Operating Expenses: 340200
3. Non Controlling interest in subsidiary's Net Income:
Icecap's reported Net Income: 504000-276000-147000 = 81000
Non Controlling Interest % = 20
Non Controlling interest in subsidiary's Net Income: 16200
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Several years ago Polar Inc. acquired an 80% interest in Icecap Co. The book values of...
How do you solve for C? Co. 1. Several years ago Polar Inc, acquired an 80% interest in Icecap Co. The book values o...
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How
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2. On January 1, 2012, Mace Co. acquired 75% of Lance Co.'s outstanding common stock. On the same date, Lance acquired an 80% interest in Curle Co. Both of these investments were acquired when book value was equal to fair value of identifiable net assets acquired. Both of these investments were accounted using the initial value method. No dividends were distributed by either Lance or Curle during 2012 or 2013. Mace paid cash dividends each year equal to 40% of...
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...
Protrade Corporation acquired 80 percent of the outstanding
voting stock of Seacraft Company on January 1, 2020, for $612,000
in cash and other consideration. At the acquisition date, Protrade
assessed Seacraft's identifiable assets and liabilities at a
collective net fair value of $765,000, and the fair value of the 20
percent noncontrolling interest was $153,000. No excess fair value
over book value amortization accompanied the acquisition.
The following selected account balances are from the individual
financial records of these two...
Protrade Corporation acquired 80 percent of the outstanding voting stock of Seacraft Company on January 1, 2017, for $476,000 in cash and other consideration. At the acquisition date, Protrade assessed Seacraft's identifiable assets and liabilities at a collective net fair value of $705,000 and the fair value of the 20 percent noncontrolling interest was $119,000. No excess fair value over book value amortization accompanied the acquisition. The following selected account balances are from the individual financial records of these two...
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