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theory (b) Calculate goodwill and non-controlling interest on the consolidated statement of financial theory position at December 31, Year 2, under parent company extension Problem 4-2 LO2, 4 The balance sheets of Par Ltd. and Sub Ltd. on December 31, Year1, are as follows Par Ltd. Sub Ltd. Cash Accounts receivable Inventory Plant Trademarks $100,000 25,000 30,000 175,000 $2,000 7,000 21,000 51,000 7.000 14 $330,000 $88,000 $50,000 80,000 110,000 40,000 $330,000 $10,000 Current liabilities Long-term debt Common shares Retained earnings 20,00019 30,000 28,000 $88,000 208
CHAPTER 4 Consolidation of Non-Wholly Owned Subsidiaries The fair values of the identifiable net assets of Sub on December 31, Year 1, are as follows: Cash Accounts receivable Inventory Plant Trademarks $2,000 7,000 26,000 60,000 14,000 109,000 Current liabilities Long-term debt $10,000 19,000 29,000 $80,000 Net assets Assume that the following took place on January 1, Year 2. (Par acquired the shares with a cash payment to the shareholders of Sub.) Case 1. Par paid $95,000 to acquire all of the common shares of Sub. Case 2, Par paid $76,000 to acquire 80% of the common shares of Sub. Case 3. Par paid $80,000 to acquire all of the common shares of Sub. Case 4. Par paid $70,000 to acquire all of the common shares of Sub. Case 5, Par paid $63,000 to acquire 90% of the common shares of Sub. Required For each of the five cases, prepare a consolidated balance sheet as at January 1, Year 2. Problem 4-3
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Common StoukSb ood 15oo Consotidatid balanu hat as at Tanuary, Yea Amount Assets cash İl,oo,000-95/000 700O 32/000 56,000 9350o It00 0 oco Inventny ( 300o +oe) DoD CoD Trad mats 4700) Good 3,5 100o Totaul ausetsLiabilh Amourt gon o Long term dubt (800004 /1o) 1ooD 359p0D Totil uabile thes -) Aasete and u.bultier c :8.th )ht to he uondid out vala ade of comme Stoue o Sub on ood cusU O Amount Pad ニフ6,000- CY100 →16,000Asset Cash Clroo oos-76,ooo+ 2000) Account tueu, vable (aSyooo f-7000) Tnventng 30,0002 6,00 Plant C,7S,oco lo0o Tnade marks 14) & 6,00 0 37000 56 0cD a,3500。 19,600 OOD Totat auut 0,000) ナ19/ 150,000 60/ooo 9% oo o le lorooo o0oo luruntuabiu ha 0,00 Common shav Retuuned earing Non Contvo jntus+ Totau Lihiluhs 3,7300oSub (noo. uiv Amount paid- dou. N = - to Asset Amout a poo Inventouざ 130/DOD +240») 2,35,00D 1Y,000 3:59200 o uabi itHu O,000 OOD 泞.coo Common sharus Rctuincd an t0000 70000 3 5lo Totl abiluthuause Asset Amourt 33,000 за,000 5 6,000 2,3 5,000 14,000 ARC as,7 Tnventory 3000 2,co) Tnadi manks 362-a00 So,opt) 19,000 Common haru Retruind earnuing Capital uesvive 9 ,000 loo0o 3,600% et deCase s A ssets 39,00 32,00v AR C 5,oot 7000 Inventory ( 39;of 24D。 Plant 1,75,00, oev) 4,00 14poo 76o00 kong tundubte80,000 tl%。) Commen sharu 99, D0D Rebirud evning 9000 374,000

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