ACCT 559 Week_4_Homework.xlsx - Student Name Susan Xiong...

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Student Name: Susan Xiong Class: Acct 559 Advanced Financial Acc Problem 04-37 PADRE, INC. AND SIERRA CORPORATION - Purchase price allocation and annual amortization Acquisition-date subsidiary fair value $ 1,003,400 Book value of subsidiary 690,000 Fair value in excess of book value 313,400 Correct! Allocations to specific accounts based on difference between fair value and book value: Land $ 225,000 Buildings and equipment $ (24,000) Copyright $ 94,000 Notes payable $ 18,400 313,400 Total $ - Correct! Life Excess Annual excess amortizations: (years) Amortizations Buildings and equipment $ (24,000) 10 $ (2,400) Copyright $ 94,000 20 $ 4,700 Notes payable $ 18,400 8 $ 2,300 Total $ 4,600 Correct! Totals for the business combination for the year ending December 31, 2015 PADRE, INC. AND SIERRA CORPORATION Account Name Balance Explanation Revenues $ 2,079,880 Correct! Cost of goods sold $ 1,206,000 Correct! Depreciation expense $ 283,200 Correct! Amortization expense $ 10,800 Correct! Interest expense $ 63,600 Correct! Equity in income of Sierra $ - Correct! Consolidated net income $ 516,280 $2,079,880 - $1,206,000 - $283,200 - $10,800 - $63,600 Correct! Net income attributable to NCI $ 44,280 Correct! The consolidated revenues is the sum of both the compa $1,394,980 + $684,900 = $2,079,880 The consolidated CoGS is the sum of both the company's $774,000 + $432,000 = $1,206,000 The consolidated dep exp is the sum of both the compan on excess FV of BV for building and equipment. $274,000 + $11,600 - $2,400 = $283,200 The cons amort exp is the sum of both the company's am excess FV of BV for copyright. $0 + $6,100 + $4,700 = $10,800 The consolidated interest expense is the sum of both the plus the interest exp on excess FV of BV for Notes Payab $52,100 + $9,200 + $2,300 = $63,600 The consolidated investment income should be zero beca investment account of Sierra on the consolidated workshe The outside owners are assigned a 20 percent share of th excess fair-value amortizations: 20% x ($226,000-$4,600
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Student Name: Susan Xiong Class: Acct 559 Advanced Financial Acc Problem 04-37 Net income to Padre Company $ 472,000 Correct! Retained earnings, 1/1 $ 1,275,000 Correct! Dividends declared $ 260,000 Correct! Retained earnings, 12/31 $ 1,487,000 Correct!
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