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ouléntries that A would make during 2019 to account for its and b. stment in T (ii) determine As retained earnings on its 12
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a The acquisition date fair value allocation schedule
Total P company Sub
Fair value paid for acquisition by P-80% $750,000
Fair value of noncontrolling interest $180,000
Total fair value $930,000
Less: Book value (common stock+Retained Earnings) $380,000 $304,000 $76,000
Excess of fair value over book value $550,000 $446,000 $104,000
Fair value allocation
Land $205,000 $164,000 $41,000
Building (10 years) $120,000 $96,000 $24,000
Trademark $100,000 $80,000 $20,000
Bonds Payable ($15,000) ($12,000) ($3,000)
Goodwill $140,000 $118,000 $22,000
b Elimination entries as of the acquisition date
Date Description Debit Credit
Common Stock $140,000
Retained Earnings $240,000
Investment in S 304000
Non-controlling Interest 76000
(To eliminate subsidiary common stock and retained earnings)
Land $205,000
Building (10 years) $120,000
Trademark $100,000
Goodwill $140,000
Bonds Payable $15,000
Investment in S $446,000
Non-controlling Interest $104,000
(To record excess fair value allocation)
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