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On January 1 2010, People Company acquired an 80% interest in Soft Co mpany for $1,000,000....
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 $30,000 50,600 305,800 199,100 Fair Value $35,200 54,300 356,100 199,100 (b) Prepare the January 1, 2015, consolidated financial statements workpaper entries to eliminate...
9-3 Prentice Company, who owns an 80% interest in Steffey Company, purchased $2,000,000 of Steffey’s 8%...
9-3 Prentice Company, who owns an 80% interest in Steffey Company, purchased $2,000,000 of Steffey’s 8% bonds at 106 on December 31, 2010. The bonds pay interest on January 1 and July 1 and mature on December 31, 2013. Prentice Company uses the cost method to account for its investment in Steffey. Selected balances from December 31, 2010 accounts of the two companies are as follows: Prentice _____Steffey____ Investment in Steffey 8% bonds $2,120,000 $ ...
Crater Inc. acquired 70% of Meter Inc's voting common stock on Jan 1, 2007. On January 1, 2010, Crater Inc received $350,000 from Meter Inc. for equipment that Crater purchased on Jan 1, 2005 for...
Crater Inc. acquired 70% of Meter Inc's voting common stock on Jan 1, 2007. On January 1, 2010, Crater Inc received $350,000 from Meter Inc. for equipment that Crater purchased on Jan 1, 2005 for $400,000. The equipment originally was expected to have a 20 year useful life and no salvage value but Meter decided the remaining life would only be 10 years. a. Prepare entry for the sale of the asset on Crater's books. b, Prepare entry for the...
Mortar Corporation acquired 80 percent ownership of Granite Company on January 1, 20X7, for $173,000. At...
Mortar Corporation acquired 80 percent ownership of Granite Company on January 1, 20X7, for $173,000. At that date, the fair value of the noncontrolling interest was $43,250. On January 1, 2007, Granite's book value for Common Stock was $50,000 & Retained Earnings was $100,000. Additional info: On January 1, 20X7, Granite reported Buildings & Equipment with a book value of $150,000 and a fair value of $191,250. Granite’s depreciable assets had an estimated economic life of 11 years on the...
On January 1, 2013, Price Company acquired an 80% interest in the common stock of Smith...
On January 1, 2013, Price Company acquired an 80% interest in
the common stock of Smith Company on the open market for $811,500,
the book value at that date.
On January 1, 2014, Price Company purchased new equipment for
$15,000 from Smith Company. The equipment cost $9,700 and had an
estimated life of five years as of January 1, 2014.
During 2015, Price Company had merchandise sales to Smith Company
of $96,200; the merchandise was priced at 25% above Price...
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....
PROBLEM 7-3 P Company Entries and Determining Gain or Loss on Sale LO 6 LO 9...
PROBLEM 7-3 P Company Entries and Determining Gain or Loss on Sale LO 6 LO 9 On January 1, 2020, P Company purchased equipment from its 80% owned subsidiary for $600,000. The carrying value of the equipment on the books of S Company was $450,000. The equipment had a remaining useful life of six years on January 1, 2020. On January 1, 2021, P Company sold the equipment to an outside party for $550,000. Required: A. Prepare in general journal...
Papilon Corporation acquired 90,000 shares of the 100,000 outstanding no-par ordinary share capital of Silicon Company...
Papilon Corporation acquired 90,000 shares of the 100,000 outstanding no-par ordinary share capital of Silicon Company for a price of P1,200,000 on January 1, 2011 at the time when Silicon Company had book and fair values as shown below. Papilon Corporation also paid P96,000 direct acquisition costs in the form of legal fees to outside consultants. Ordinary Share Capital P480,000 Accumulated Profits 600,000 Total net assets at book value P1,080,000 Add: Differences between current fair value and book value Inventories...
On January 1, 2013, Point Corporation acquired an 80% interest in Sharp Company for $1,997,000. At that time Sharp Compa...
On January 1, 2013, Point Corporation acquired an 80% interest
in Sharp Company for $1,997,000. At that time Sharp Company had
common stock of $1,516,000 and retained earnings of $702,000. The
book values of Sharp Company’s assets and liabilities were equal to
their fair values except for land and bonds payable. The land had a
fair value of $99,000 and a book value of $81,000. The outstanding
bonds were issued at par value on January 1, 2008, pay 9% annually,...
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 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 $30,000 50,600 305,800 199,100 Fair Value $35,200 54,300 356,100 199,100 (b) Prepare the January 1, 2015, consolidated financial statements workpaper entries to eliminate...
On January 1, 2013, Price Company acquired an 80% interest in
the common stock of Smith Company on the open market for $811,500,
the book value at that date.
On January 1, 2014, Price Company purchased new equipment for
$15,000 from Smith Company. The equipment cost $9,700 and had an
estimated life of five years as of January 1, 2014.
During 2015, Price Company had merchandise sales to Smith Company
of $96,200; the merchandise was priced at 25% above Price...
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....
PROBLEM 7-3 P Company Entries and Determining Gain or Loss on Sale LO 6 LO 9 On January 1, 2020, P Company purchased equipment from its 80% owned subsidiary for $600,000. The carrying value of the equipment on the books of S Company was $450,000. The equipment had a remaining useful life of six years on January 1, 2020. On January 1, 2021, P Company sold the equipment to an outside party for $550,000. Required: A. Prepare in general journal...
On January 1, 2013, Point Corporation acquired an 80% interest
in Sharp Company for $1,997,000. At that time Sharp Company had
common stock of $1,516,000 and retained earnings of $702,000. The
book values of Sharp Company’s assets and liabilities were equal to
their fair values except for land and bonds payable. The land had a
fair value of $99,000 and a book value of $81,000. The outstanding
bonds were issued at par value on January 1, 2008, pay 9% annually,...
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...
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