A. ONLY 2014'S CLOSING INVENTOY PORTION WILL BE REMOVED |
|
1) COST OF GOODS SOLD |
|
55000 /125*25 = $11000 WILL BE REMOVED AS INTRA ENTITY TRANSFERS |
|
POLAR INC. |
$ 8,96,000 |
ICECAP INC. |
$ 2,76,000 |
LESS: INTRA COMPANY ADJUSTMENTS |
$ -11,000 |
$ 11,61,000 |
|
2) INVENTORY |
|
55000 /125*100 = $11000 WILL BE REMOVED AS INTRA ENTITY TRANSFERS |
|
POLAR INC. |
$ 4,84,000 |
ICECAP INC. |
$ 1,84,000 |
LESS: INTRA COMPANY ADJUSTMENTS |
$ -11,000 |
$ 6,57,000 |
|
3) NET INCOME |
|
SALES |
$ 5,04,000 |
LESS: COST OF GOODS SOLD |
$ -2,76,000 |
LESS: OPERATING EXPENSES |
$ -1,47,000 |
$ 81,000 |
|
NON CONTROLLING INTEREST SHARE 20% |
$ 16,200 |
B. ONLY 2014'S CLOSING INVENTOY PORTION WILL BE REMOVED |
|
1) COST OF GOODS SOLD |
|
49000 /125*25 = $9,800 WILL BE REMOVED AS INTRA ENTITY TRANSFERS |
|
POLAR INC. |
$ 8,96,000 |
ICECAP INC. |
$ 2,76,000 |
LESS: INTRA COMPANY ADJUSTMENTS |
$ -9,800 |
$ 11,62,200 |
|
2) INVENTORY |
|
49000 /125*25 = $9,800 WILL BE REMOVED AS INTRA ENTITY TRANSFERS |
|
POLAR INC. |
$ 4,84,000 |
ICECAP INC. |
$ 1,84,000 |
LESS: INTRA COMPANY ADJUSTMENTS |
$ -9,800 |
$ 6,58,200 |
|
3) NET INCOME |
|
SALES |
$ 5,04,000 |
LESS: COST OF GOODS SOLD |
$ -2,76,000 |
LESS: OPERATING EXPENSES |
$ -1,47,000 |
$ 81,000 |
|
NON CONTROLLING INTEREST SHARE 20% |
$ 16,200 |
C. |
|
1) BUILDINGS |
|
(112000-70000 = $42000 EXCESS ASSET RECORDED) |
|
POLAR INC. |
$ 5,01,000 |
ICECAP INC. |
$ 2,20,000 |
LESS: INTRA COMPANY ADJUSTMENTS |
$ -42,000 |
$ 6,79,000 |
|
2) OPERATING EXPENSES |
|
(112000-70000 = $42000 EXCESS ASSET RECORDED, DEPRECIATION 42000/5 = $8,400 |
|
POLAR INC. |
$ 2,10,000 |
ICECAP INC. |
$ 1,47,000 |
LESS: INTRA COMPANY ADJUSTMENTS |
$ -8,400 |
$ 3,48,600 |
|
3) NET INCOME |
|
SALES |
$ 5,04,000 |
LESS: COST OF GOODS SOLD |
$ -2,76,000 |
LESS: OPERATING EXPENSES |
$ -1,47,000 |
$ 81,000 |
How do you solve for C? Co. 1. Several years ago Polar Inc, acquired an 80% interest in Icecap Co. The book values o...
Several years ago Polar Inc. acquired an 80% interest in Icecap Co. The book values of Icecap's asset and liability accounts at that time were.considered to be equal to their fair values. Polar's acquisition value coIresponded to the underlying book value of Icecap so that no allocations or goodwill resulted from the transaction. The following selected account balances were from the individual financial records of these two companies as of December 31, 2013 Polar Icecap Co. $ 504,000 276,000 147,000...
Protrade Corporation acquired 80 percent of the outstanding voting stock of Seacraft Company on January 1, 2017, for $412,000 in cash and other consideration. At the acquisition date, Protrade assessed Seacraft's identifiable assets and liabilities at a collective net fair value of $545,000 and the fair value of the 20 percent noncontrolling interest was $103,000. No excess fair value over book value amortization accompanied the acquisition. The following selected account balances are from the individual financial records of these two...
Please help me solve this.
Protrade Corporation acquired 80 percent of the outstanding voting stock of Seacraft Company on January 1, 2014, for $484,000 in cash and other consideration. At the acquisition date, Protrade assessed Seacraft's identifiable assets and liabilities at a collective net fair value of $725,000 and the fair value of the 20 percent noncontrolling interest was $121,000. No excess fair value over book value amortization accompanied the acquisition. The following selected account balances are from the individual...
Protrade Corporation acquired 80 percent of the outstanding
voting stock of Seacraft Company on January 1, 2020, for $612,000
in cash and other consideration. At the acquisition date, Protrade
assessed Seacraft's identifiable assets and liabilities at a
collective net fair value of $765,000, and the fair value of the 20
percent noncontrolling interest was $153,000. No excess fair value
over book value amortization accompanied the acquisition.
The following selected account balances are from the individual
financial records of these two...
Protrade Corporation acquired 80 percent of the outstanding voting stock of Seacraft Company on January 1, 2017, for $476,000 in cash and other consideration. At the acquisition date, Protrade assessed Seacraft's identifiable assets and liabilities at a collective net fair value of $705,000 and the fair value of the 20 percent noncontrolling interest was $119,000. No excess fair value over book value amortization accompanied the acquisition. The following selected account balances are from the individual financial records of these two...
Protrade Corporation acquired 80 percent of the outstanding voting stock of Seacraft Company on January 1, 2017, for $428,000 in cash and other consideration. At the acquisition date, Protrade assessed Seacraft's identifiable assets and liabilities at a collective net fair value of $585,000 and the fair value of the 20 percent noncontrolling interest was $107,000. No excess fair value over book value amortization accompanied the acquisition. The following selected account balances are from the individual financial records of these two...
Protrade Corporation acquired 80 percent of the outstanding
voting stock of Seacraft Company on January 1, 2017, for $612,000
in cash and other consideration. At the acquisition date, Protrade
assessed Seacraft's identifiable assets and liabilities at a
collective net fair value of $765,000 and the fair value of the 20
percent noncontrolling interest was $153,000. No excess fair value
over book value amortization accompanied the acquisition.
The following selected account balances are from the individual
financial records of these two...
Protrade Corporation acquired 80 percent of the outstanding voting stock of Seacraft Company on January 1, 2017, for $428,000 In cash and other consideration. At the acquisition date, Protrade assessed Seacraft's Identifiable assets and liabilities at a collective net fair value of $585,000 and the fair value of the 20 percent noncontrolling Interest was $107,000. No excess fair value over book value amortization accompanied the acquisition. The following selected account balances are from the Individual financial records of these two...
Protrade Corporation acquired 80 percent of the outstanding voting stock of Seacraft Company on January 1, 2017, for $428,000 In cash and other consideration. At the acquisition date, Protrade assessed Seacraft's Identifiable assets and liabilities at a collective net fair value of $585,000 and the fair value of the 20 percent noncontrolling Interest was $107,000. No excess fair value over book value amortization accompanied the acquisition. The following selected account balances are from the Individual financial records of these two...
2. Allen Co. held 80% of the common stock of Brewer Inc. and 40% of this subsidiary's convertible bonds. The following consolidated financial statements were for 2012 and 2013. Revenues Cost of goods sold Depreciation and amortization Gain on sale of building Interest expense Non-controlling interest Net income to controlling interest 2012 2013 $ 1,064,000 $1,232,000 (714,000 (756,000) 126,000) 140,000) -0- 28.000 42.000 42.000 $ 12.600 $ 15.400 $ 169,400 $ 306,600 $ Retained earnings, January 1 Net income (from...