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Chapter 3 - Computer Project PECOS COMPANY AND SUARO COMPANY Consolidated Information Worksheet Pecos Suaro Revenues-1,052,000-427,000 Operating expenses 821,000 262,000 Amortization of intangibles Goodwill impairment loss Income of Suaro Net income-165,000 Retained earningsPecos, 1/1 Retained earningsSuaro, 1/1-201,000 Net income (above)-165,000 Dividends paid 200,000 35,000 Retained earnings, 12/31-331,000 Cash 195,000 95,000 Receivables 247,000 143,000 Inventory 415,000 197,000 Investment in Suaro Land 341,000 85,000 Equipment (net) 240,100 100,000 Software 312,000 Other intangibles 145000 Goodwill Total assets 932,000 Liabilities-1,537,100-251,000 Common stock-500,000-350,000 Retained earnings (above)-331,000 Total liabilities and equity-932,000 Fair Value Allocation Schedule Acquisition-date fair value 1,450,000 Book value 476,000 Excess fair value over book value 974,000 Amortizations and Write-off 2009 2010 Land-10,000 Brand Name 60,000 Software 100,000 50,000 50,000 IPR&D 300,000 300,000 Goodwill 524,000 Total 974,000 350,000 50,000 Suaro's Retained Earnings Changes 2009 2010 Income 75,000 165,000 Dividends 35,000 Asset:...........(Fair - book value)..................2009................2010------------------------------------------------------------------------- Land .............$10,000.................................$0....................$0 Brand name...$60,000.................................$0....................$0 Goodwill.........$524,000...............................$0....................$0 I P R&D..........$300,000...............................$300,000.........$0 Software........$100,000...............................$50,000...........$50,000--------------------------------------------------------------------------- Total..............$974,000................................$350,000..........$50,000 I P R&D is all written off for yr2009, $300,00, since the project was a failure has no future economic bene... View Full Document

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