AFARDRILL 01 12512 123145 31.pdf - Consolidated Financial...

Consolidated Financial Statements (Part 2)
Multiple Choice ｱ Computational
Fair value decrement
Use the following information for the next two questions:
Popo Co. acquired 80% of Momo &R± RQ -DQXDU\ ²³ ´µ[² IRU ڎ¶µµ³µµµ± 7KH
following information was determined at acquisition date:
Popo Co. Momo Co. Momo Co.
Carrying
amount
Carrying
amount Fair value
Equipment 4,000,000 2,000,000 1,600,000
Accumulated
depreciation (800,000) (400,000) ( 320,000)
Net 3,200,000 1,600,000 1,280,000
Remaining useful life ｱ Jan. 1, 20x1 10 years 5 years 5 years
1. How much is the consolidated ｳ equipment ｱ net ｴ in the December 31, 20x2
financial statements?
a. 3,968,000 b. 3,628,000 c. 3,428,000 d. 3,328,000
2. The consolidation journal entry for the depreciation of the fair value
adjustment on December 31, 20x2 includes
3. On January 1, 20x1, Donkey Co. acquired 75% of Monkey Co. At that time,
Monkey ｶV HTXLSPHQW KDV D FDUU\LQJ DPRXQW RI ڎ¸µµ³µµµ DQG D IDLU YDOXH RI