a. Fair value of assets - Fair value of liabilities = (112,000 - 26,000) * 65% = 55900
b. (112,000 - 26,000) + 43000 - 45150 = 83850
c. (112,000 - 26,000) + 29000 - 74750 = 40250
CONSOLIDATED REPORTING MHE Reader book value-Google Search ONSOLIDATED REPORTING Saved Help Save &Exit Submi 3 P5-20...
Pie Corporation acquired 65 percent of Slice Company's common stock on r 31, 20X5, at underlying book value. The book values and fair values of Slice's assets and liabilities were equal, and the fair value of the noncontrolling interest was equal to 35 percent of the total book value of Slice. Slice provided the following trial balance data at December 31, 20X5: Deco Acco Required: a. How much did Pie pay to purchase its shares of Slice? (Round your answer to nearest...
On January 1, 2021, Ackerman Company acquires 80% of Seidel Company for $1,900,320 in cash consideration. The remaining 20 percent noncontrolling interest shares had an acquisition-date estimated fair value of $475,080. Seidel’s acquisition-date total book value was $1,887,000. The fair value of Seidel’s recorded assets and liabilities equaled their carrying amounts. However, Seidel had two unrecorded assets—a trademark with an indefinite life and estimated fair value of $271,950 and several customer relationships estimated to be worth $199,800 with four-year remaining lives....
4th multiple choice) 106,000 Eco 215, 00-01.. Manage your team... Saved Help Save & Exit On June 1, Cline paid $911,000 cash for all of the issued and outstanding common stock of Renn Corp. The carrying amounts for Renn's assets and liabilities on Jun 1 follow: Cash Accounts receivable Capitalized software costs Goodwill Liabilities Net assets $ 161,000 194,000 345,000 168,000 (159,000) $ 709,000 On June 1, Renn's accounts receivable had a fair value of $143,000. Additionally, Renn's in-process research...
Pie Corporation acquired 75 percent of Slice Company’s common stock on December 31, 20X5, at underlying book value. The book values and fair values of Slice’s assets and liabilities were equal, and the fair value of the noncontrolling interest was equal to 25 percent of the total book value of Slice. Slice provided the following trial balance data at December 31, 20X5: Required: a. How much did Pie pay to purchase its shares of Slice? (Round your answer to nearest...
1. A company acquires a subsidiary and will prepare consolidated financial statements for extemal reporting purposes. For internal reporting purposes, the company has decided to apply the initial value method, Why might the company have made this decision? a. It is a relatively easy method to apply. 5. Operating results appearing on the parent's financial records rellect consolidated totals. c. GAAP now requires the use of this particular method for internal reporting purposes. d. Consolidation is not required when the...
Pie Corporation acquired 85 percent of Slice Company’s common stock on December 31, 20X5, at underlying book value. The book values and fair values of Slice’s assets and liabilities were equal, and the fair value of the noncontrolling interest was equal to 15 percent of the total book value of Slice. Slice provided the following trial balance data at December 31, 20X5: Debit Credit Cash $ 28,600 Accounts Receivable 65,950 Inventory 90,200 Buildings and Equipment (net) 212,000 Cost of Goods...
Plummet Corporation reported the book value of its net assets at $400,000 when Zenith Corporation acquired 100 percent ownership. The fair value of Plummet's net assets was determined to be $510,000 on that date. 9. Based on the preceding information, what amount of goodwill will be reported in consolidated financial statements presented immediately following the combination if Zenith paid $550,000 for the acquisition? A. $0 B. $50,000 C. $150,000 D. $40,000 *I know the answer is $40,000 but if you...
Plummet Corporation reported the book value of its net assets at $400,000 when Zenith Corporation acquired 100 percent ownership. The fair value of Plummet's net assets was determined to be $510,000 on that date. 9. Based on the preceding information, what amount of goodwill will be reported in consolidated financial statements presented immediately following the combination if Zenith paid $550,000 for the acquisition? A. $0 B. $50,000 C. $150,000 D. $40,000 *I know the answer is $40,000 but if you...
On January 1, Coldwater Company has a net book value of $2,133,000 as follows: 2,450 shares of preferred stock; par value $100 per share; cumulative, nonparticipating, nonvoting; call value $108 per share $ 245,000 31,500 shares of common stock; par value $40 per share 1,260,000 Retained earnings 628,000 Total $ 2,133,000 Westmont Company acquires all outstanding preferred shares for $263,000 and 60 percent of the common stock for $1,191,840. The acquisition-date fair value of the noncontrolling interest in Coldwater’s common...
plz answer this Q chapter 10 Saved Help Save & Exit Submit Check my work 7 On January 1, 2020, Alison, Inc., paid $81,200 for a 40 percent interest in Holister Corporation's common stock. This investee had assets with a book value of $219,000 and liabilities of $80,500, A patent held by Holister having a $7,400 book value was actually worth $55,400. This patent had a six-year remaining life. Any further excess cost associated with this acquisition was attributed to...