Koch acquired 100% of O'Bannon on January 1, 2016. The transaction was not a bargain purchase....
Koch acquired 100% of O'Bannon on January 1, 2016. The transaction was not a bargain purchase. On the acquisition date, O'Bannon's Inventory had a book value of 44,621 and a fair value of 35,751. No intercompany inventory transaction occurred during 2016. Koch and O'Bannon both use the FIFO inventory cost flow assumption.
O'Bannon's inventory turns over approximately 10 times per year. What AAP adjustment to Cost of Goods Sold must be made when preparing Koch's consolidated financial statements for 2016?
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Koch acquired 100% of O'Bannon on January 1, 2016. The
transaction was not a bargain purchase....
Koch acquired 100% of O'Bannon on January 1, 2016. The transaction was not a bargain purchase....
Koch acquired 100% of O'Bannon on January 1, 2016. The transaction was not a bargain purchase. On the acquisition date, O'Bannon's Inventory had a book value of 49,228 and a fair value of 27,009. No intercompany inventory transaction occurred during 2016. Koch and O'Bannon both use the FIFO inventory cost flow assumption. O'Bannon's inventory turns over approximately 10 times per year. What adjustment to Inventory must be made when preparing Koch's consolidated financial statements as of 12/31/2016?
On January 1, 2016 Ringling acquired 100% of Trump. The transaction was not a bargain purchase....
On January 1, 2016 Ringling acquired 100% of Trump. The transaction was not a bargain purchase. On the date of the acquisition, the fair value of the Trump's Notes Payable due 12/31/2020 was -57,861 and the book value was -63,969. For simplicity, discounts on Notes payable are amortized on a straight-line basis. What AAP adjustment must be made to the Notes Payable account when preparing Ringling's consolidated balance sheet as of 12/31/2018 ?
On January 1, 2016 Ringling acquired 100% of Trump. The transaction was not a bargain purchase....
On January 1, 2016 Ringling acquired 100% of Trump. The transaction was not a bargain purchase. One the date of the acquisition, the fair value of the Trump's Notes Receivable due 12/31/2020 was -67,249 and the book value was -73,623. For simplicity, discounts on Notes receivable are amortized on a straight-line basis. What AAP adjustment must be made to the Interest Income account when preparing Ringling's income statement for 2018 ?
Sanders acquired 100% of Clinton on January 1, 2017. The transaction was not a bargain purchase....
Sanders acquired 100% of Clinton on January 1, 2017. The transaction was not a bargain purchase. On the date of the acquisition, Clinton's Building account had a net book value of 3,973,264 and a fair value of 4,186,268. As of 1/1/2017, Clinton's buildings have a remaining life of 10 years and are depreciated on a straight-line basis with no salvage value. When preparing Sanders' consolidated financial statements for 2017, what AAP adjustment must be made for Depreciation expense?
On January 1, 2016 Penn acquired 100% of Teller. The transaction was not a bargain purchase....
On January 1, 2016 Penn acquired 100% of Teller. The transaction was not a bargain purchase. On the acquisition date, it was determined that Teller had internally-generated patents with a fair value of $83,661,335 that had not been recorded on its financial statements, in accordance with GAAP. The patents were estimated to have a remaining useful life of 15 years as of the acquisition date. What amount should be reported on Teller's consolidated financial statements as of 12/31/2021 for these...
On January 1, 2017 Preibus acquired 100 % of Spicer. This acquisition was not a bargain...
On January 1, 2017 Preibus acquired 100 % of Spicer. This acquisition was not a bargain purchase. On the date of acquisition, Spicer's Equipment had a net book value of 1,600,000 and a fair value of 1,435,082. Preibus determined that Spicer's equipment had a remaining life of 5 years at the date of acquisition. What is the consolidation adjustment (in addition to adding the two trial balance amounts together) that must be made to the Equipment account when preparing consolidated...
On July 1, 2016, Schumer acquired 100% of Mitchell. The transaction was not a bargain purchase....
On July 1, 2016, Schumer acquired 100% of Mitchell. The transaction was not a bargain purchase. On December 31, 2016 the balance of Schumer's Common stock account was $-201,589 and the balance of Mitchell's Common stock account was $-70,764. What amount must be reported on the Schumer's consolidated balance sheet as of 12/31/2016?
Biden acquired 100% of Cain on January 1, 2016 for $3,562,203. The book value of the...
Biden acquired 100% of Cain on January 1, 2016 for $3,562,203. The book value of the net assets of Cain on the acquisition date was $1,257,655. Differences between the fair value of identifiable net assets and the book value were determined to total $256,736. Biden follows a practice of amortizing its intangible assets over 15 years. Assume there has been no impairment of goodwill since the acquisition. What amount of Goodwill should Biden recognize on its consolidated financial statements as...
Madigan acquired 100% of Rauner on January 1, 2016 for $1,214,161. During 2016, Madigan reported $270,748...
Madigan acquired 100% of Rauner on January 1, 2016 for $1,214,161. During 2016, Madigan reported $270,748 of net income and declared and paid $24,907 in dividends. There was no AAP involved in the transaction. Madigan uses the equity method of accounting to report its Investment in Rauner on its standalone financial statements. What amount should Madigan report for its Investment in Rauner on its consolidated balance sheet as of 12/31/2016?
On January 1, 2016, Aspen Company acquired 80 percent of Birch Company's voting stock for $364,000....
On January 1, 2016, Aspen Company acquired 80 percent of Birch
Company's voting stock for $364,000. Birch reported a $320,000 book
value and the fair value of the noncontrolling interest was $91,000
on that date. Then, on January 1, 2017, Birch acquired 80 percent
of Cedar Company for $108,000 when Cedar had a $108,000 book value
and the 20 percent noncontrolling interest was valued at $27,000.
In each acquisition, the subsidiary's excess acquisition-date fair
over book value was assigned to...
On January 1, 2016, Aspen Company acquired 80 percent of Birch
Company's voting stock for $364,000. Birch reported a $320,000 book
value and the fair value of the noncontrolling interest was $91,000
on that date. Then, on January 1, 2017, Birch acquired 80 percent
of Cedar Company for $108,000 when Cedar had a $108,000 book value
and the 20 percent noncontrolling interest was valued at $27,000.
In each acquisition, the subsidiary's excess acquisition-date fair
over book value was assigned to...
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