Homework Answers
A) value of NCI at acquisition date
= 30/70 × 150000
=$64285
B) goodwill
=( consideration paid+fair value of NCI)-(assets acquired- liabilities )
=(150000+64285)-(275000-270000)
=$209285
C) consolidated NI
=p corps net income +70%of sCorps net income
= $55000+$21000
=$76000
D) ending value of investmentvin sub and NCI
= NCI at acquisition + goodwill+share of NI-dividends payable
=64285+209285+21000-70000
=$224570
Add Answer to:
On January 1, 2015, P Corporation acquired 70 percent of Sea-Gull Company's common stock for $150...
On January 1, 2019, Penguin Corporation bought 80% of the stock of Sea Gull Corporation for...
On January 1, 2019, Penguin Corporation bought 80% of the stock
of Sea Gull Corporation for $700,000. The Balance Sheets of the two
companies immediately after the acquisition (January 1, 2019) of
Sea Gull Corp. showed the following amounts:
On the date of acquisition, the Book Value of Sea Gull equaled
its Fair Market Value, except for land that had a fair market value
of $200,000, the fair value of previously unrecorded identifiable
intangibles (2-year life) of Sea Gull was...
On January 1, 2019, Penguin Corporation bought 80% of the stock of Sea Gull Corporation for...
On January 1, 2019, Penguin Corporation bought 80% of the stock
of Sea Gull Corporation for $700,000. The Balance Sheets of the two
companies immediately after the acquisition (January 1, 2019) of
Sea Gull Corp. showed the following amounts:
On the date of acquisition, the Book Value of Sea Gull equaled
its Fair Market Value, except for land that had a fair market value
of $200,000, the fair value of previously unrecorded identifiable
intangibles (2-year life) of Sea Gull was...
Pace Corporation acquired 100 percent of Spin Company's common stock on January 1, 20X9. Balance sheet...
Pace Corporation acquired 100 percent of Spin Company's common stock on January 1, 20X9. Balance sheet data for the two companies immediately following the acquisition follows: Item Pace Corporation Spin Company Cash $ 30,000 $ 25,000 Accounts Receivable 80,000 40,000 Inventory 150,000 55,000 Land 65,000 40,000 Buildings and Equipment 260,000 160,000 Less: Accumulated Depreciation (120,000 ) (50,000 ) Investment in Spin Company Stock 150,000 Total Assets $ 615,000 $ 270,000 Accounts Payable $45,000 $33,000 Taxes Payable 20,000 8,000 Bonds Payable...
On January 1, 2017, Parent Co., acquired 100 percent of the common stock of Sub Co...
On January 1, 2017, Parent Co., acquired 100 percent of the common stock of Sub Co for $1,000,000 in cash. At that time, the building which had a remaining life of 20 years and was undervalued by 200,000 and they had a patent not recorded on their books of 100,000 with a remaining life of 10 years. Below is the relevant information for Parent Co. and Sub Co. Parent Co 12/31/18 Sub Co 12/31/16 Sub Co 13/31/17 Sub Co 13/31/18...
On January 1, 2014, Doone Corporation acquired 70 percent of the outstanding voting stock of Rockne...
On January 1, 2014, Doone Corporation acquired 70 percent of the outstanding voting stock of Rockne Company for $588,000 consideration. At the acquisition date, the fair value of the 30 percent noncontrolling interest was $252,000 and Rockne’s assets and liabilities had a collective net fair value of $840,000. Doone uses the equity method in its internal records to account for its investment in Rockne. Rockne reports net income of $310,000 in 2015. Since being acquired, Rockne has regularly supplied inventory...
Pop Corporation acquired 70 percent of Soda Company's voting common shares on January 1, 20X2, for...
Pop Corporation acquired 70 percent of Soda Company's voting common shares on January 1, 20X2, for $109,200. At that date, the noncontrolling interest had a fair value of $46,800 and Soda reported $71,000 of common stock outstanding and retained earnings of $30,000. The differential is assigned to buildings and equipment, which had a fair value $20,000 higher than book value and a remaining 10-year life, and to patents, which had a fair value $35,000 higher than book value and a...
On January 1, 2015, Bactin Corporation acquired 10% of Oakton Company for $100,000. On that date,...
On January 1, 2015, Bactin Corporation acquired 10% of Oakton Company for $100,000. On that date, the total book value and fair value of Oakton's net assets was $900,000. Any difference between cost and fair value is attributable to goodwill. In 2015, Oakton reported net income of $60,000 and paid dividends of $30,000. On January 1, 2016, Bactin Corporation bought another 10% of Oakton for $100,000, and on that date, the book value and fair value of Oakton's net assets...
On January 1, 20X8, Polo Corporation acquired 75 percent of Stallion Company's voting common stock for...
On January 1, 20X8, Polo Corporation acquired 75 percent of Stallion Company's voting common stock for $300,000. At the time of the combination, Stallion reported common stock outstanding of $200,000 and retained earnings of $150,000, and the fair value of the noncontrolling interest was $100,000. The book value of Stallion's net assets approximated market value except for patents that had a market value of $50,000 more than their book value. The patents had a remaining economic life of ten years...
On January 3, 2016, Persoff Corporation acquired all of the outstanding voting stock of Sea Cliff,...
On January 3, 2016, Persoff Corporation acquired all of the outstanding voting stock of Sea Cliff, Inc. in exchange for $9,260,000 in cash. Persoff elected to exercise control over Sea Cliff as a wholly owned subsidiary with an independent accounting system. Both companies have December 31 fiscal year-ends. At the acquisition date, Sea Cliff’s stockholders’ equity was $2,610,000 including retained earnings of $1,810,000. Persoff pursued the acquisition, in part, to utilize Sea Cliff’s technology and computer software. These items had...
On January 1, 2018, Pen Corporation acquired 75% of the outstanding common stock of Sen Company...
On January 1, 2018, Pen Corporation acquired 75% of the outstanding common stock of Sen Company for $450,000. Fair value of noncontrolling interest at the date of acquisition is $116,500. Sen’s stockholders’ equity on January 1, 2018, was as follows: Common stock, $20 par $200,000 Additional paid-in capital 100,000 Retained earnings 100,000 Accumulated OCI 25,000 Differences between book value and fair value of the identifiable net assets of Sen Company on January 1, 2018, were...
On January 1, 2019, Penguin Corporation bought 80% of the stock
of Sea Gull Corporation for $700,000. The Balance Sheets of the two
companies immediately after the acquisition (January 1, 2019) of
Sea Gull Corp. showed the following amounts:
On the date of acquisition, the Book Value of Sea Gull equaled
its Fair Market Value, except for land that had a fair market value
of $200,000, the fair value of previously unrecorded identifiable
intangibles (2-year life) of Sea Gull was...
On January 1, 2019, Penguin Corporation bought 80% of the stock
of Sea Gull Corporation for $700,000. The Balance Sheets of the two
companies immediately after the acquisition (January 1, 2019) of
Sea Gull Corp. showed the following amounts:
On the date of acquisition, the Book Value of Sea Gull equaled
its Fair Market Value, except for land that had a fair market value
of $200,000, the fair value of previously unrecorded identifiable
intangibles (2-year life) of Sea Gull was...
Most questions answered within 3 hours.
-
Write the ionic equations for the first stage of salts
hydrolysis.
Anion, Cation?
Na2S
NiSO4
K2SO4...
asked 1 hour ago -
suppose there is a normally distributed population with a mean of
250 and a standard deviation...
asked 2 hours ago -
Question Three
Suppose you as project manager are using the Waterfall
development methodology on a large...
asked 3 hours ago -
Which statement is not true about welfare in Canada?
A.Benefits typically vary based on one's ability...
asked 3 hours ago -
Please help me with FLOWCHART and UML diagram for class,
thank you!
#include <iostream>
#include <fstream>...
asked 4 hours ago -
3. Describe the “logic circuit” of the Lac operon. Which
proteins are bound or not to...
asked 4 hours ago -
Ayesha’s adjusted gross income is $60,000 in 2019. She donated a
piece of artwork with a...
asked 4 hours ago -
For Dijkstra’s shortest path algorithm:
a. Give the Big-O time for Dijkstra’s shortest path algorithm
and...
asked 4 hours ago -
Phosphorus violates the 'octet rule' in biological molecules,
forming more covalent bonds than expected based on...
asked 4 hours ago -
A 1.3 eV electron has a 10-4 probability of tunneling
through a 2.4 eV potential barrier....
asked 5 hours ago -
What is the one ingredient that is common to being successful
with all stakeholders?
profit
trust...
asked 5 hours ago -
Write an assembly language 32 bit program that reads in lines of
text by a .txt...
asked 5 hours ago