Question

Price Corporation acquired 100 percent ownership of Saver Company on January 1, 20X8, for $122,400. At that date, the fair value of Saver's buildings and equipment was $16,000 more than the book value. Accumulated depreciation on this date was $19,000. Buildings and equipment are depreciated on a 10-year basis. Although goodwill is not amortized, Price's management concluded at December 31, 20X8, that goodwill involved in its acquisition of Saver shares had been impaired and the correct carrying value was $2,500. No additional impairment occurred in 20X9. Trial balance data for Price and Saver on December 31, 20X9, are as follows: Saver Company Debit Credit $ 39,000 23,000 33,000 34,000 168,000 Item Cash Accounts Receivable Inventory Land Buildings & Equipment Investment in Saver Company Cost of Goods Sold Wage Expense Depreciation Expense Interest Expense Other Expenses Dividends Declared Accumulated Depreciation Accounts Payable Wages Payable Notes Payable Common Stock Retained Earnings Sales Income from Saver Company Price Corporation Debit Credit 65,500 92,000 104,000 55,000 364,000 136,900 136,000 35,000 25,000 12,000 23,000 33,000 $ 158,000 46,000 10,000 140,000 192,000 190,000 295,000 50,400 $1,081,400 $1,081,400 107,000 20,000 9,000 4,000 16,000 36,400 $ 37,000 11,000 4,000 123,400 59,000 47,000 208,000 $ 489,400 $489,400

Answer 1

Price Corporation & Subsidiary financial statements are as below:

Formal financial reports who for companies who own a controlling stake in others as 50% ownership or greater are typically represented as a consolidated balance sheet.

Vendor Payments.xlsx Trulyser.xlsx - Excel X FILE S. HOME Chit FORMULAS DATA REVIEW VIEW INSERT PAGE LAYOUT Calion - 11 La Copy A A Bad E Paste Good Check Cell = = SE E A Normal Conditional Format as Neutral Formatting Table A Wrap Text Merge Center - lignement S ? * - . M. Druthi B - Autosum Ay N Clear Sort & Find & lear Filter - Select Editing General $ -% Numbers Format Painter BTU 1 clipboard Fam Calculation x Insert Delete Format - - - " Cels C Styles 111 K L M N O P Q R S T U V W X Y Z 1 Price Corporation & Subsidiary z Consolidated Balance Sheet 3 December 31, 2069 Amount (51 Amount (5) S Fixed Assets: 637,000 6 Parent ca 419,000 7 Subsidiary Co 202,000 8 Investments: 136,400 9 Current Assets, loans & advances: 10 Parent co: 11 Subsidiary Co 12 Stock: 251,000 13 Parent co: 199,000 14 Subsidiary Co 54.000 15 Debtors and balances: 115,000 16 Parent co: 92.0 17 Subsidiary Cos 23,000 Total Assets 1,130,900 57,000 16,000 11.00 203,000 140,000 123.400 122.400 57.000 20 Liabilities & Stockholder's equity 21 Creditors 22 Parent co: 20 Subs diary Cu 24 Notes Payables 2 Parent co: 26 Subsidiary Co 27 Shareholders equity: 28 Accounts Payable: 29 Parent ca: 30 Subsidiary Co 31 Acumulated Depreciations 32 Parent co: 33 Subsidiary Co: 34 Common Stock: 35 Parent co: 36 Subsidiary Co 37 Sales: Total Liabilities 11,000 195,000 158,000 37,000 251,000 192,000 59,000 141,100 1,119,900 Realizable_Chegy Bank Delails Chege Bahrain Islamic bank_chegy Simple costing system Price corporation ... READY + 0 O e Le LB 02 E L L 3:04 PM PODMQX71/2020 S . HBDUTO