SCh06 - Student Name: Instructor Class: McGraw-Hill/Irwin...

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Student Name: Instructor Class: McGraw-Hill/Irwin Problem 06-39 ALBUQUERQUE, INCORPORATED General Journal Part a. Account Debit Credit Investment in Marmon 16,000 Additional paid-in capital 16,000 Part b. Account Debit Credit Additional paid-in capital 24,000 Investment in Marmon 24,000
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Given Data P06-39 Number of shares of Marmon acquired by Albuquerque, Inc. 16,000 Purchase price of shares $600,000 Marmon book value at acquisition date $710,000 Assessed fair value of noncontrolling interest $150,000 Marmon's present stockholders' equity: Common stock ($10 par value) $200,000 Additional paid-in capital 230,000 Retained earnings 370,000 Total $800,000 Part a. Number of shares issued by Marmon 5,000 Issue price per share $47 Shares purchased by Albuquerque - Part b. Number of shares issued by Marmon 4,000 Issue price per share $33 Shares purchased by Albuquerque -
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Student Name: Instructor Class: McGraw-Hill/Irwin Problem 06-42 FRED, INC. AND HERMAN CORPORATION - Allocation of Acquisition-date Excess Fair Value Consideration transferred $312,000 Noncontrolling interest fair value 208,000 Acquisition-date fair value $520,000 Correct! Book value acquired 300,000 Fair value in excess of book value $220,000 Annual Excess cost allocated to accounts Life Excess based on fair value: (years) Amortizations Patents 90,000 12 $7,500 Customer list $130,000 10 13,000 Total Correct! $20,500 Correct! a. Consolidation entries *TL Investment in Herman 7,000 Correct! Land 7,000 (To eliminate unrealized gain created by previous intra-entity transfer) *G Retained earnings, 1/1/11 8,000 Correct! Cost of goods sold 8,000 (To remove unrealized inventory gain from prior year so it can be realized in current year) S Common stock (Herman) 100,000 Correct! Retained earnings, 1/1/11 (Herman) 292,000 Investment in Herman 235,200 Noncontrolling interest in Herman 156,800 (To eliminate Herman's stockholders' equity accounts and record beginning year balance for noncontrolling interest) A Patents 75,000 Correct! Customer list
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SCh06 - Student Name: Instructor Class: McGraw-Hill/Irwin...

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