Chapter_3_problem_17

Chapter_3_problem_17 - 17. (30 Minutes) (Consolidation...

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Unformatted text preview: 17. (30 Minutes) (Consolidation entries for two years. Parent uses equity method.) Fair Value Allocation and Annual Amortization: Acquisition fair value (consideration paid) ............. $490,000 Book value (assets minus liabilities or total stockholders' equity) .................................................................... (400,000 ) Excess fair value over book value ............................ $90,000 Excess fair value assigned to specific accounts based on individual fair values Annual Excess Life Amortizations Land ........................................... $10,000 ---- Buildings ................................. 40,000 4 yrs. $10,000 Equipment ................................. (20,000 ) 5 yrs. (4,000) Total assigned to specific accounts ....................... 30,000 Goodwill .................................... 60,000 Indefinite-0- Total ....................................... $90,000 $6,000 Consolidation Entries as of December 31, 2009 Entry S Common Stock—Abernethy..................................Common Stock—Abernethy....
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This note was uploaded on 04/05/2010 for the course ACCY 260 taught by Professor Yu during the Spring '10 term at Ferrum.

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Chapter_3_problem_17 - 17. (30 Minutes) (Consolidation...

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