ACT4491 Problem 3-2

ACT4491 Problem 3-2 - PROBLEM 3-2 (1) Value Analysis...

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PROBLEM 3-2 (1) Company Parent NCI Implied Price Value Value Analysis Schedule Fair Value (80%) (20%) Company fair value. .......................................... $385,000 $308,000 $77,000 Fair value of net assets excluding goodwill. ...... 335,000 268,000 67,000 Goodwill. ........................................................... $ 50,000 $ 40,000 $10,000 Determination and Distribution of Excess Schedule Company Parent NCI Implied Price Value Fair Value (80%) (20%) Fair value of subsidiary. ............. $385,000 $308,000 $ 77,000 Less book value of interest acquired: Common stock. ..................... $ 50,000 Paid-in capital in excess of par 100,000 Retained earnings. ................ 150,000 Total equity. ..................... $300,000 $300,000 $300,000 Interest acquired. ................... 80% 20% Book value. ................................ $240,000 $ 60,000 Excess of fair value over book value. .................................... $ 85,000 $ 68,000 $ 17,000 Adjustment of identifiable accounts: Worksheet Amortization Adjustment Key Life per Year Inventory. ................................... $10,000 debit D1 Buildings. ................................... 25,000 debit D2 10 $2,500 Goodwill. .................................... 50,000 debit D3 Total. ..................................... $85,000
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Problem 3-2, Continued (2) Peres Company and Soap Company Worksheet for Consolidated Financial Statements For Year Ended December 31, 20X2 Consolidated Controlling Consolidated Trial Balance Eliminations Net Retained Balance Peres Soap Dr. Cr. Income NCI Earnings Sheet Inventory. ......................................................... 100,000 50,000 ............ ............ ............ ............ ............ 150,000 Other Current Assets. ...................................... 148,000 180,000 ............ ............ ............ ............ ............ 328,000 Investment in Soap. ......................................... 388,000 ............ ............ (CY1) 72,000 ............ ............ ............ ............ ............ ............ (CY2)
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ACT4491 Problem 3-2 - PROBLEM 3-2 (1) Value Analysis...

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