AMIS624X2E - part a. Investment in Sub Cash part b....

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part a. Investment in Sub 330 Cash 330 part b. Inventory 25 Land 15 Goodwill 80 Convenant NTC 40 Liabilities 10 Equipment 30 Revaluation Capital 120 Accum. Depr.-Equip. 80 Equipment 80 Ret. Earnings 170 Additional PIC 170 part c. Common Stock 40 Additional PIC 170 Revaluation Capital 120 Investment in Sub. 330 part d. Assumed fair value of NCI is ((297/90%)*10 Since none is known Common Stock 40 Additional PIC 170 Revaluation Capital 120 Investment in Sub. 297 NCI in Net Assets 33
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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 140 120 Building and Equip. (ne 550 500 Land 70 80 L-T Debt (230) (200) Convenant NTC 40 Total goodwill Goodwill to CI: Acquisition price $512 Less CI share 456 CI goodwill $56 90% Goodwill to NCI: Total goodwill $62 Less: CI goodwill 56 NCI goodwill $6 10%
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Acquisition: NCI at acquisition: Book value of Sub $500 70 570 X 20% 114 NCI goodwill 6 NCI in Net Assets $120
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$512 Susequent Year Amortizat 120 632 500 Inventories 132 Building and Equip. (net Land $- L-T Debt 20 Convenant NTC 50 Non-GW amortizations (10) (30) End Year One: 40 - 70 Reported Net Inc. $62
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AMIS624X2E - part a. Investment in Sub Cash part b....

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