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 patents?
Homework Answers
Since the fairvalue of patents is $83,661,335 and the useful life is 15 years. The same has to written off over the useful life of the asset on a straight line basis.
Therefore amortization amount per year is $83,661,335 / 15 years = $5,577,422.
On 31/12/2021 (6 years has been completed since Penn acquired Teller). Therefore the value of patents to be reported on Teller's consolidated financial statements as on 12/31/2021 would be 83,661,335 (-) 83,661,335 * 6/15
= 83,661,335 (-) 33,464,534
= $50,196,801
Add Answer to:
On January 1, 2016 Penn acquired 100% of Teller. 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?
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?
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 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, 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 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 ?
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?
On January 1, 2018, Pepper Enterprise acquired 80% of Harlan Company's outstanding common shares in exchange...
On January 1, 2018, Pepper Enterprise acquired 80% of Harlan Company's outstanding common shares in exchange for $5,000,000 in cash. The priced paid for the 80% ownership interest was proportionally representative of the fair value of all of Harlan's shares. At acquisition date, Harlan's book value was $5,000,000. The recorded assets and liabilities had fair values equal to their individual book values except that a building (10-year life) with a book value of $600,000 had an appraised value of $1,000,000....
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...
On January 1, 2018, Pepper Enterprise acquired 80% of Harlan Company’s outstanding common shares in exchange...
On January 1, 2018, Pepper Enterprise acquired 80% of Harlan Company’s outstanding common shares in exchange for $5,000,000 in cash. The priced paid for the 80% ownership interest was proportionately representative of the fair value of all of Harlan’s shares. At acquisition date, Harlan’s book value was $5,000,000. The recorded assets and liabilities had fair values equal to their individual book values except that a building (10-year life) with a book value of $600,000 had an appraised value of $1,000,000. Also, at acquisition...
On January 1, 2018, Pepper Enterprise acquired 80% of Harlan Company's outstanding common shares in exchange for $5,000,000 in cash. The priced paid for the 80% ownership interest was proportionally representative of the fair value of all of Harlan's shares. At acquisition date, Harlan's book value was $5,000,000. The recorded assets and liabilities had fair values equal to their individual book values except that a building (10-year life) with a book value of $600,000 had an appraised value of $1,000,000....
Most questions answered within 3 hours.
-
Myca Corp. has a project with the following cash flows. What is
the value of the...
asked 43 minutes ago -
When an object moves through a fluid, the fluid exerts a viscous
force F on the...
asked 2 hours ago -
Why did the observed chemistry of thallium mislead Mendelev to
place the group 13 element (Tl)...
asked 3 hours ago -
A sine wave signal is displayed on the screen of an
oscilloscope. 6 peak-to-peak divisions are...
asked 6 hours ago -
a
1500 kg car accelerates from 0 to 25 m / s in 21.0s. How much...
asked 7 hours ago -
Calculate the molarity of each of the following solutions:
(a) 30.5 g of ethanol (C2H5OH) in...
asked 7 hours ago -
1 Refer to the build-borrow-or-buy framework as a decision tree
for the Adidas company. Identify a...
asked 7 hours ago -
Problem 2: The Problem of Social Cost. A Rancher and Farmer live
side-by-side to each other....
asked 9 hours ago -
a uniform bar of weight 40N is 4 meter long. weights
on 60N and 100N are...
asked 8 hours ago -
Define Diet counceling? What are the
responsibilities of a counselor?
asked 10 hours ago -
Hey im just confused about how to put the ' A angle n' and ' S...
asked 10 hours ago -
A short essay about the WSJ article on Oreo versus Hydrox.
asked 10 hours ago