Chapter 4-16 - CHAPTER 4 CONSOLIDATED FINANCIAL STATEMENTS...

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CHAPTER 4 CONSOLIDATED FINANCIAL STATEMENTS AND OUTSIDE OWNERSHIP Answers to Problems 29. (45 Minutes) (Asks about several consolidated balances and consolidation process. Includes the different accounting methods to record investment.) a. Schedule 1—Purchase Price Allocation and Excess Amortizations Purchase price (includes combination costs) . ............ $664,000 Book value of acquired (80%) . ................. (480,000 ) Cost in excess of book value . ................. 184,000 Excess cost assigned to buildings Annual Excess based on fair value Life Amortizations ($80,000 × 80%) . ................................... 64,000 20 years $3,200 Goodwill . ................................................. $120,000 indefinite -0- Total . ........................................................ $3,200 b. $120,000 (see schedule 1 above) c. Common Stock (Dylan) . ...................................... 300,000 Additional Paidin Capital (Dylan) . ...................... 90,000 Retained Earnings (Dylan) . ................................. 210,000
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Chapter 4-16 - CHAPTER 4 CONSOLIDATED FINANCIAL STATEMENTS...

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