Copy of ch03

Copy of ch03 - Student Name Class AC 541 Problem 03-24 Part...

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Student Name: Class: AC 541 Problem 03-24 Part a. Michael Company and Aaron Company - Fair Value allocation and Annual Amortization Aaron fair value $470,000 Book value of subsidiary 360,000 Excess fair over book value $110,000 Correct! Annual Assigned to specific accounts Life Excess based on fair market value: (years) Amortizations Royalty agreements $60,000 6 $10,000 Trademark 50,000 10 5,000 Total $110,000 $15,000 Correct! Correct! -Conversion to initial value method for years prior to 2013 Aaron retained earnings, 1/1/13 $490,000 Retained earnings at date of purchase 230,000 Increase since date of purchase $260,000 Excess amortization expenses 60,000 Conversion to equity method for years $200,000 prior to 2013 Correct!
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Part a. Consolidated Worksheet MICHAEL COMPANY AND CONSOLIDATED SUBSIDIARY Consolidation Worksheet For Year Ending December 31, 2013 Michael Aaron Consolidation Entries Consolidated Accounts Company Company Debit Credit Totals Income Statement Revenues $(610,000) $(370,000)
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This note was uploaded on 02/17/2009 for the course AC 541 taught by Professor Seltz during the Spring '09 term at BU.

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Copy of ch03 - Student Name Class AC 541 Problem 03-24 Part...

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