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Exercise 5-4 On January 1, 2015, Porter Company purchased an 80% interest in Salem Company for...
Exercise 5-4 On January 1, 2015, Porter Company purchased an 80% interest in Salem Company for...
Exercise 5-4 On January 1, 2015, Porter Company purchased an 80% interest in Salem Company for $262,600. On this date, Salem Company had common stock of $204,000 and retained earnings of $130,100. An examination of Salem Company's balance sheet revealed the following comparisons between book and fair values: Inventory Other current assets Equipment Land Book Value 530,000 50,600 305,800 199,100 Fair Value $35,200 54,300 356,100 199,100 Your answer is partially correct. Try again. Determine the amounts that should be allocated...
b)Determine the amounts at which the above assets (plus goodwill, if any) will appear on the...
b)Determine the amounts at which the above assets (plus
goodwill, if any) will appear on the consolidated balance sheet
please do parts a and b with work.
Exercise 5-4 On January 1, 2015, Porter Company purchased an 80% interest in Salem Company for $262,600. On this date, Salem Company had common stock of $204,000 and retained earnings of $130,100. An examination of Salem Company's balance sheet revealed the following comparisons between book and fair values: Inventory Other current assets Equipment...
* Exercise 5-15 A 90% interest in Saxton Corporation was purchased by Palm Incorporated on January...
* Exercise 5-15 A 90% interest in Saxton Corporation was purchased by Palm Incorporated on January 2, 2014. The common stock balance of Saxton Corporation was $2,953,800 on this date, and the balance in retained earnings was The cost of the investment to Palm Incorporated was $3,774,000. The balance sheet information available for Saxton Corporation on the acquisition date revealed these values: Inventory (FIFO) Equipment (net) Land Book Value $687,400 1,988,100 1,630,600 Fair Value $798,200 1,988,100 1,961,300 The equipment was...
Problem #1 Phillins Company purchased a un interest in Standards Corporation for $2.340,000 on January 1. 2018. Sta...
Problem #1 Phillins Company purchased a un interest in Standards Corporation for $2.340,000 on January 1. 2018. Standards Corporation had $1,650,000 of common stock and $1,050,000 of retained earnings on that date. The following values were determined for Standards Corporation on the date of purchase: Inventory Land Book Value $240.000 2,400,000 1,620,000 Fair Value $300,000 2,700,000 1.800.000 Equipment Required: A. Prepare a computation and allocation schedule for the difference between the implied and book value in the consolidated statements workpaper....
P company purchased a 70% interest in S company on January 1, 2015 for $3,000,000. The book value...
P company purchased a 70% interest in S company on January 1, 2015 for $3,000,000. The book value and fair value of the assets and liabilities of S company on that day were: BOOK VALUE FAIR VALUE Current assets $700,000 700,000 Equipment 1,600,000 2,000,000 Land 500,000 700,000 Deferred charge 400,000 400,000 Total Assets 3,200,000 3,800,000 Less: Liabilities (700,000) (700,000) Net Assets: 2,500,000 3,100,000 The equipment had a remaining useful life of 8 years on January 1, 2015 and the deferred...
Muscat Company purchased a 90% interest in Dhofar Corporation for O.R. 2,340,000 on January 1, 2013. Dhofar Corporation...
Muscat Company purchased a 90% interest in Dhofar Corporation for O.R. 2,340,000 on January 1, 2013. Dhofar Corporation had O.R. 1,650,000 of common stock and O.R. 1,050,000 of retained earnings on that date. The following values were determined for Dhofar Corporation on the date of purchase: Book Value Fair Value Inventory O. R 240,000 O.R 300,000 Land 2,400,000 2,700,000 Equipment 1,620,000 1,800,000 Instructions: 1. Prepare the January 1, 2013, workpaper entries to eliminate the investment account and allocate the difference...
Exercise 4-5 On January 1, 2014, Plate Company purchased a 90% interest in the common stock...
Exercise 4-5 On January 1, 2014, Plate Company purchased a 90% interest in the common stock of Set Company for $597,840, an amount $20,400 in excess of the book value of equity acquired. The excess relates to the understatement of Set Company's land holdings. Excerpts from the consolidated retained earnings section of the consolidated statements workpaper for the year ended December 31, 2014, follow: 1/1/14 retained earnings Net income from above Set Company 171,200 119,700 (50,300 ) 240,600 Consolidated Balances...
Exercise 4-7 On January 1, 2014, Pert Company purchased 85% of the outstanding common stock of...
Exercise 4-7 On January 1, 2014, Pert Company purchased 85% of the outstanding common stock of Sales Company for $361,700. On that date, Sales Company's stockholders' equity consisted of common stock, $93,900; other contributed capital, $37,000; and retained earnings, $148,500. Pert Company paid more than the book value of net assets acquired because the recorded cost of Sales Company's land was significantly less than its fair value. During 2014 Sales Company earned $134,900 and declared and paid a $50,500 dividend....
Exercise 4-7 On January 1, 2014, Pert Company purchased 85% of the outstanding common stock of...
Exercise 4-7 On January 1, 2014, Pert Company purchased 85% of the outstanding common stock of Sales Company for $361,700. On that date, Sales Company's stockholders' equity consisted of common stock, $93,900; other contributed capital, $37,000; and retained earnings, $148,500. Pert Company paid more than the book value of net assets acquired because the recorded cost of Sales Company's land was significantly less than its fair value. During 2014 Sales Company earned $134,900 and declared and paid a $50,500 dividend....
Problem #2 Pullman Corporation acquired a 90% interest in Sleeter Company for $6,500,000 on January 1...
Problem #2 Pullman Corporation acquired a 90% interest in Sleeter Company for $6,500,000 on January 1 2018. At that time Sleeter Company had common stock of $4,500,000 and retained earnings of $1,800,000. The balance sheet information available for Sleeter Company on January 1, 2018, showed the following: Inventory (FIFO) Equipment (net) Land Book Value $1,300.000 1.500.000 3.000.000 Fair Value $1,500,000 1,900,000 3,000,000 The equipment had a remaining useful life of ten years. Sleeter Company reported S240,000 of net income in...
Exercise 5-4 On January 1, 2015, Porter Company purchased an 80% interest in Salem Company for $262,600. On this date, Salem Company had common stock of $204,000 and retained earnings of $130,100. An examination of Salem Company's balance sheet revealed the following comparisons between book and fair values: Inventory Other current assets Equipment Land Book Value 530,000 50,600 305,800 199,100 Fair Value $35,200 54,300 356,100 199,100 Your answer is partially correct. Try again. Determine the amounts that should be allocated...
b)Determine the amounts at which the above assets (plus
goodwill, if any) will appear on the consolidated balance sheet
please do parts a and b with work.
Exercise 5-4 On January 1, 2015, Porter Company purchased an 80% interest in Salem Company for $262,600. On this date, Salem Company had common stock of $204,000 and retained earnings of $130,100. An examination of Salem Company's balance sheet revealed the following comparisons between book and fair values: Inventory Other current assets Equipment...
* Exercise 5-15 A 90% interest in Saxton Corporation was purchased by Palm Incorporated on January 2, 2014. The common stock balance of Saxton Corporation was $2,953,800 on this date, and the balance in retained earnings was The cost of the investment to Palm Incorporated was $3,774,000. The balance sheet information available for Saxton Corporation on the acquisition date revealed these values: Inventory (FIFO) Equipment (net) Land Book Value $687,400 1,988,100 1,630,600 Fair Value $798,200 1,988,100 1,961,300 The equipment was...
Problem #1 Phillins Company purchased a un interest in Standards Corporation for $2.340,000 on January 1. 2018. Standards Corporation had $1,650,000 of common stock and $1,050,000 of retained earnings on that date. The following values were determined for Standards Corporation on the date of purchase: Inventory Land Book Value $240.000 2,400,000 1,620,000 Fair Value $300,000 2,700,000 1.800.000 Equipment Required: A. Prepare a computation and allocation schedule for the difference between the implied and book value in the consolidated statements workpaper....
Exercise 4-5 On January 1, 2014, Plate Company purchased a 90% interest in the common stock of Set Company for $597,840, an amount $20,400 in excess of the book value of equity acquired. The excess relates to the understatement of Set Company's land holdings. Excerpts from the consolidated retained earnings section of the consolidated statements workpaper for the year ended December 31, 2014, follow: 1/1/14 retained earnings Net income from above Set Company 171,200 119,700 (50,300 ) 240,600 Consolidated Balances...
Exercise 4-7 On January 1, 2014, Pert Company purchased 85% of the outstanding common stock of Sales Company for $361,700. On that date, Sales Company's stockholders' equity consisted of common stock, $93,900; other contributed capital, $37,000; and retained earnings, $148,500. Pert Company paid more than the book value of net assets acquired because the recorded cost of Sales Company's land was significantly less than its fair value. During 2014 Sales Company earned $134,900 and declared and paid a $50,500 dividend....
Exercise 4-7 On January 1, 2014, Pert Company purchased 85% of the outstanding common stock of Sales Company for $361,700. On that date, Sales Company's stockholders' equity consisted of common stock, $93,900; other contributed capital, $37,000; and retained earnings, $148,500. Pert Company paid more than the book value of net assets acquired because the recorded cost of Sales Company's land was significantly less than its fair value. During 2014 Sales Company earned $134,900 and declared and paid a $50,500 dividend....
Problem #2 Pullman Corporation acquired a 90% interest in Sleeter Company for $6,500,000 on January 1 2018. At that time Sleeter Company had common stock of $4,500,000 and retained earnings of $1,800,000. The balance sheet information available for Sleeter Company on January 1, 2018, showed the following: Inventory (FIFO) Equipment (net) Land Book Value $1,300.000 1.500.000 3.000.000 Fair Value $1,500,000 1,900,000 3,000,000 The equipment had a remaining useful life of ten years. Sleeter Company reported S240,000 of net income in...
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