Ch4Problems-9and10

Ch4Problems-9and10 - Assets 281,600 Liabilities 96,000...

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Problem 9 Percy NCI Cost of 70% interest in Saltz 140,000 Fair value of NCI’s interest in Saltz (16 x 3,000) 48,000 Book value of Saltz’s net assets Assets 176,000 Liabilities 60,000 116,000 Shareholders’ interest 81,200 34,800 Acquisition differential 58,800 13,200 Allocated: Fv – Bv Inventory 10,000 Plant 18,000 Trademarks 14,000 Long term debt 2,000 44,000 30,800 13,200 Goodwill 28,000 0 Percy Corp. Consolidated Balance Sheet January 1, Year 1 Cash (200 – 140 + 4) 64,000 Accounts receivable (50 + 14) 64,000 Inventory (60 + 42 + 10) 112,000 Plant (350 + 102 + 18) 470,000 Trade marks (0 + 14 + 14) 28,000 Goodwill 28,000 766,000 Current liabilities (100 + 20) 120,000 Long-term debt (160 + 40 – 2) 198,000
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Common shares 220,000 Retained earnings 180,000 Non-controlling interest 48,000 448,000 766,000
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Problem 10 (a) Cost of 90% of Donna 351,000 Implied value of 100% of Donna 390,000 Book value of Donna’s net assets
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Unformatted text preview: Assets 281,600 Liabilities 96,000 185,600 Acquisition differential 204,400 Allocated: Fv – Bv Accounts receivable - 2,400 Inventory 17,800 Plant 28,800 Trademarks 30,000 Patents 27,600 Domain names 50,000 Long-term debt - 6,000 145,800 Goodwill 58,600 Non-controlling interest 10% x 390,000 39,000 Prima Ltd Consolidated Balance Sheet January 1, Year 6 Cash (370,000 – 351,000 + 6,400) 25,400 Accounts receivable (80,000 + 22,400 – 2,400) 100,000 Inventory (96,000 + 67,200 + 17,800) 181,000 Plant (510,000 + 163,200 + 28,800) 702,000 Trademarks 30,000 Patents (100,000 + 22,400 + 27,600) 150,000 Domain names (0 + 0 + 50,000) 50,000 Goodwill 58,600 1,297,000 Current liabilities (160,000 + 32,000) 192,000 Long-term debt (256,000 + 64,000 + 6,000) 326,000 Common shares 352,000 Retained earnings 388,000 Non-controlling interest 39,000 1,297,000...
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This note was uploaded on 10/23/2011 for the course BUS 3600 taught by Professor Akashrattan during the Spring '11 term at Langara.

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Ch4Problems-9and10 - Assets 281,600 Liabilities 96,000...

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