Class Ch 4 example Student

Class Ch 4 example Student - Chapter 4 example Acquisition...

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f78d423d63b264ba6c03877348ad0177ce9897f7.xlsx --Information 1 of 4 Chapter 4 example Chapter 4 example Acquisition Date 1/1/2009 Investment in Subsidiary Account Acquisition price (80% interest) percent acquired 80% Prior Years Chg in R/E consideration given $425,000 Prior Years Amortization Current Year Noncontrolling interest 20% Income FMV of noncontrol Interest $102,500 Amortization Equity in Earnings Subsidiary Equity on Date of Acquisition (1/1/2009) Dividends Common Stock $100,000 Balance 12/31/2010 Retained Earnings 300,000 Total $400,000 Goodwill Allocation to Controlling and Noncontrolling Interests Total Fair Value Appraisal of Subsidiary Accounts: Fair value at acquisition date $425,000 $102,500 $527,500 Relative FV of net assets 410,000 102,500 512,500 Buildings 20,000 8 2,500 Goodwill 15,000 0 15,000 Land 50,000 Equipment 12,500 5 2,500 Unrecorded royalty agreements 30,000 20 1,500 TOTAL 6,500 20,000 Computation of Goodwill Unamortized Excess Allocations - 1/1/2013 Balances Acquisition date Fair value 527,500 Account Original Prior Amort Bal 1/1/13 Book Value 400,000 Buildings 20,000 10,000 10,000 Excess fair value 127,500 Land 50,000 0 50,000
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This note was uploaded on 02/20/2012 for the course ACC 3101 taught by Professor Tom during the Spring '11 term at American University in Bulgaria.

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Class Ch 4 example Student - Chapter 4 example Acquisition...

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