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The balance sheets of Prima Ltd. and Donna Corp. on December 31, Year 5, are shown below: Prima Donna Cash Accounts receivable Inventory Plant Patents S 374,750 84,750 101,500 517,000 105,500 11,200 27,900 70,700 168,200 27,900 S1,183,500 305,900 Current liabilities Long-term debt Common shares Retained earnings s 167,000 S 37 267.500 359,000 390,000 73,500 107,500 87,400 1,183,500 305,900 The fair values of the identifiable net assets of Donna Corp. on this date are as follows Cash Accounts receivable Inventory Plant Trademarks Patents Current liabilities Long-term debt S 11,200 25,000 100,000 208,000 45,000 67,500 37,500 89,000 In addition to the assets identified above, Donna owned a significant number of Internet domain names which are unique alphanumeric names that are used to identify a particular numeric Internet address. These domain names can be sold separately and are estimated to be worth $39,000 On January 1, Year 6, Prima Ltd. paid $330,000 in cash to acquire 80% of the common shares of Donna Corp.Required: (a) Prepare the consolidated balance sheet on January 1, Year 6, under entity theory Prima Ltd. Consolidated Balance Sheet January 1, Year 6 Click to select) Click to select) Click to select) Click to select) (Click to select) (Click to select) Click to select) Click to sele Click to select) Click to select) Click to select) Click to select) Click to select (b) Now assume that an independent business valuator valued the NCl at $68,000 at the date of acquisition. What amount would be reported as goodwill? Goodwill(c) Assume that Prima is a private entity, uses ASPE, and chooses to use the cost method to account for its investment in Donna. Prepare Primas January 1, Year 6, separate-entity balance sheet after the business combination. Prima Ltd Balance Sheet January 1, Year 6 Click to select) (Click to select) Click to select) Click to select) Click to select)(Click to select) Click to select) Click to select) (Click to select) Click to select

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Question is about consolidation of Prima and Donna balance sheet and income statement.

Please let me know if it is not clearly visible to you even after zooming.Please hit LIKE button if this helped. For any further explanation, pleese put your query in comment, wll get back to you. Cost of 80% of Donna 330,000 Cost of 100% of Donna Less: Carrying amourt of Lonna Net Assets Liabilities (37500+735oc) 111000 5-194,900 Difference Allocoted to: Accounts recehable 5 217,500 25000-27900 100000-70700 5 29,300 39 R00 Plant term Dcbt Goodwill Non Contorlling Increst 82,s00 Consolidated Balance Sheet Cosh 374750+11200-330000 55,950 101500+7070+29300 5 201,500 Plant 45,000 5 173,000 9,000 105500+27900+39600 Domain names Tota Assets Ourrent labilities Long-tem deht Common shares Retalned carrins Non-controlling interest Tolal Liebilities nd Equity 167000-37500 5 20,500 5 356,500 359,300 350,a0o 267500173500 15500 $ 1,392,500 Part b Na would ba conslderedas$68,0co Insread of $82,.500 Differential $14,500 will be adjuszed in Goodwill Hence, Goodwll will be 28,300 Cash Accaunts reccivablc 14,750 ,750 374750-350000 Invertment in Donra Carp. Planit 330,000 5517,000 Total Assets $ 1,183,500 5 167,000 5 267,500 359,100 S 390,300 Ourrenit abilities Common shares Total Liabilities and Debt Credt Consalidated 374,75011,200 $ 84,750527,900 330,000$55.95 Cash Accaunts recelvable S 2,900 109,730 $201,500 $ 725,000 55,000 5 173,000 5330,000 $ 155,920174,080 174,080-174,080 39,000 43,300 $ 101500570,70029.300 5170005168,200 39,800 5 45,000 5 105,500 5 27,9005 39,600 Plant Investrent in cnne cquisition Dif evential Doenain nes 21 760C, 80% $ 30,000 43,300 305,900 $566,00O 662,900 1,392,500 Current liablite s 167,000 $ 27,500 204,500 73,500S 15500356,5o0 561,000 Lons term debt 26700 34,500 111,000 Shareholder Equity Common shares Retaired earnings 3590005107,500 107.500 3900005 87,400 87.400 $ 359,000 $ 390,000 82,500 $82,500 194,900 5194,900 S 82,500 $ 831500 1,183,500 305,900 $194,900 $ 98,0001,392,500

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