ACCT 559 Week_4_Homework.xlsx

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

• Homework Help
• 16
• 100% (21) 21 out of 21 people found this document helpful

This preview shows pages 1–3. Sign up to view the full content.

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

This preview has intentionally blurred sections. Sign up to view the full version.

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!
This is the end of the preview. Sign up to access the rest of the document.
• Spring '11
• Hong

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern