midterm Oct 20, 2010 solution students

midterm Oct 20, 2010 solution students - Question 3 Fall...

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Question 3 Fall 2010 Midterm Income statement Cost of 70% 65,000 P S Div I/C I/C I/C I/C I/C I/C Amort Consol Implied fair value 100% 92,857 Sales 900,000 240,000 (125,000) (90,000) 925,000 Book value of S Mgt fee revenue 26,500 (26,500) 0 Common shares 50,000 Interest revenue 6,800 (3,300) 3,500 Retained earnings 15,000 Gain on sale of land 30,000 (30,000) 0 65,000 Dividend revenue 10,500 0 (10,500) 0 P's ownership 65,000 937,000 276,800 (10,500) (59,800) (125,000) 0 0 0 (90,000) 0 928,500 Purchase discrepancy 27,857 Cost of sales 540,000 162,000 (125,000) (3,500) 7,000 4,500 (90,000) 495,000 Interest expense 20,000 (3,300) 16,700 Allocated: Other expenses 180,000 74,800 (26,500) 3,600 231,900 Inventory (12,000) Income tax expense 80,000 16,000 96,000 Capital assets 18,000 NCI (3,930) (3,930) 6,000 6,000 820,000 252,800 0 (29,800) (125,000) (3,500) 7,000 4,500 (90,000) (330) 835,670 Goodwill 21,857 Net income 117,000 24,000 (10,500) (30,000) 0 3,500 (7,000) (4,500) 0 330 92,830 Purchase discrepancy amortization schedule Balance Sheet Amort Amort Amort P S FVI I/C I/C I/C I/C I/C I/C I/C Amort Consol DOA Year 1 Year 2 Year 3 Balance Cash 12200 12900 25100 Goowill 21,857 0 0 0 21,857 A/R 17200 9100 26300 Inventory (12,000) 12000 0 0 0 Note receivable 55000 -55000 0 Capital assets 18,000 (3,600) (3,600) (3,600) 7,200 Inventory 32000 27000 -7000 -4500 47500 27,857 8,400 (3,600) (3,600) 29,057 Land
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midterm Oct 20, 2010 solution students - Question 3 Fall...

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