AMIS624X2C - part a. Investment in Sub Cash part b....

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part a. Investment in Sub 500 Cash 500 part b. Equipment 30 Land 15 Goodwill 38 Convenant NTC 30 Inventory 8 Liabilities 5 Revaluation Capital 100 Accum. Depr.-Equip. 140 Equipment 140 Ret. Earnings 350 Additional PIC 350 part c. Common Stock 50 Additional PIC 350 Revaluation Capital 100 Investment in Sub. 500 part d. Common Stock 50 Additional PIC 350 Revaluation Capital 95 Investment in Sub. 455 NCI in Net Assets 40
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Acquisition: HW5 Cash Fair value of NCI Total Fair Value Book value of Sub Fair value in excess of book Book Value Inventory 88 100 Building and Equip. (ne 360 400 Land 120 100 L-T Debt (340) (300) Convenant NTC 52 Total goodwill Goodwill to CI: Acquisition price $600 Less CI share 510 CI goodwill $90 90% Goodwill to NCI: Total goodwill $100 Less: CI goodwill 90 NCI goodwill $10 10%
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Acquisition: NCI at acquisition: Book value of Sub $700 (20) 680 X 25% 170 NCI goodwill 10 NCI in Net Assets $180
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Subsequent: $600 Susequent Year Amortizat 180 780 700 Inventories 80 Building and Equip. (net Land $- L-T Debt (12) Convenant NTC (40) Non-GW amortizations 20 (40) End Year One: 52 - (20) Reported Net Inc. $100 Adjustments: Non-GW Goodwill Share of NI Adjustments Split: Non-GW Goodwill Incr (Decr) in net assets
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Amount Life Year 1 Year 2 $(12) < 1 $12 $- (40) 10 4 4 20 indef. (40)
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AMIS624X2C - part a. Investment in Sub Cash part b....

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