Chapter 4-14 - CHAPTER 4 CONSOLIDATED FINANCIAL STATEMENTS...

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CHAPTER 4 CONSOLIDATED FINANCIAL STATEMENTS AND OUTSIDE OWNERSHIP Answers to Problems 27. (35 Minutes) (Various consolidated balances, and the sale of a portion of the investment) a. Schedule 1—Purchase Price Allocation and Excess Amortizations Purchase price . ......................................... $156,000 Book value acquired ($140,000 × 80%). .... (112,000 ) Price in excess of book value . ................. $44,000 Annual Excess Allocation based on fair value Life Amortizations Land ($10,000 × 80%) . .................... 8,000 Buildings and equipment ($20,000 × 80%) . .............................. 16,000 10 years $1,600 Goodwill . ................................................... $20,000 indefinite -0- Total . ..................................................... $1,600 Buildings and equipment Jeffries book value . ................................................ $600,000 Goldblom book value . ............................................ 160,000 Allocation (see schedule 1 above) . ....................... 16,000 Consolidated balance . ........................................... $776,000
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Chapter 4-14 - CHAPTER 4 CONSOLIDATED FINANCIAL STATEMENTS...

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