Topic consolidation subsequent to year of acquisition

Topic: Consolidation Subsequent to Year of Acquisition-Initial Value and Partial Equity Methods
Topic: Consolidations-Subsequent to the Date of Acquisition

63.
2011, by issuing 10,500 shares of its $10 par
value common stock with a fair value of $95 per
share. On January 1, 2011, Vega's land was
undervalued by $40,000, its buildings were
overvalued by $30,000, and equipment was
undervalued by $80,000. The buildings have a
20-year life and the equipment has a 10-year
life. $50,000 was attributed to an unrecorded
trademark with a 16-year remaining life. There
was no goodwill associated with this investment.
Compute the December 31, 2015, consolidated
common stock.
A. $450,000.
B. $530,000.
C. $555,000.
D. $635,000.
E. $525,000.
$450,000 (Parent Only)
AACSB: Analytic
AICPA BB: Critical Thinking
AICPA FN: Measurement
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 03-01 Recognize the complexities in preparing consolidated financial reports that emerge from the
passage of time.
Learning Objective: 03-04 Understand that a parent's internal accounting method for its subsidiary investments has no
effect on the resulting consolidated financial statements.
Topic: Consolidation Subsequent to Year of Acquisition-Initial Value and Partial Equity Methods
Topic: Consolidations-Subsequent to the Date of Acquisition

64.
overvalued by $30,000, and equipment was
undervalued by $80,000. The buildings have a
20-year life and the equipment has a 10-year
life. $50,000 was attributed to an unrecorded
trademark with a 16-year remaining life. There
was no goodwill associated with this investment.
Compute the December 31, 2015, consolidated
additional paid-in capital.
A. $210,000.
B. $75,000.
C. $1,102,500.
D. $942,500.
E. $525,000.
$75,000 (Parent Only)
AACSB: Analytic
AICPA BB: Critical Thinking
AICPA FN: Measurement
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 03-01 Recognize the complexities in preparing consolidated financial reports that emerge from the
passage of time.
Learning Objective: 03-04 Understand that a parent's internal accounting method for its subsidiary investments has no
effect on the resulting consolidated financial statements.
Topic: Consolidation Subsequent to Year of Acquisition-Initial Value and Partial Equity Methods
Topic: Consolidations-Subsequent to the Date of Acquisition

65.
life. $50,000 was attributed to an unrecorded
trademark with a 16-year remaining life. There
was no goodwill associated with this investment.
Compute the December 31, 2015 consolidated
retained earnings.
A. $1,645,375.
B. $1,350,000.
C. $1,565,375.
D. $1,840,375.
E. $1,265,375.
AACSB: Analytic
AICPA BB: Critical Thinking
AICPA FN: Measurement
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 03-01 Recognize the complexities in preparing consolidated financial reports that emerge from the
passage of time.
Learning Objective: 03-04 Understand that a parent's internal accounting method for its subsidiary investments has no
effect on the resulting consolidated financial statements.