117a prepare consolidation worksheet entries for

117.(A.) Prepare consolidation worksheet entries for December 31, 2012.
(B.) Prepare consolidation worksheet entries for December 31, 2013.
Matthews Co. acquired all of the common stock of Jackson Co. on January 1, 2012. As of that date,
Jackson had the following trial balance:
During 2012, Jackson reported net income of $96,000 while paying dividends of $12,000. During 2013,
Jackson reported net income of $132,000 while paying dividends of $36,000.
Assume that Matthews Co. acquired the common stock of Jackson Co. for $588,000 in cash. As of
January 1, 2012, Jackson's land had a fair value of $102,000, its buildings were valued at $188,000, and
its equipment was appraised at $216,000. Any excess of consideration transferred over fair value of assets
and liabilities acquired is due to an unamortized patent to be amortized over 10 years.
Matthews decided to use the equity method for this investment.
Required:

118.Prepare a consolidation worksheet for this business combination.
On January 1, 2011, Rand Corp. issued shares of its common stock to acquire all of the outstanding
common stock of Spaulding Inc. Spaulding's book value was only $140,000 at the time, but Rand issued
12,000 shares having a par value of $1 per share and a fair value of $20 per share. Rand was willing to
convey these shares because it felt that buildings (ten-year life) were undervalued on Spaulding's records
by $60,000 while equipment (five-year life) was undervalued by $25,000. Any consideration transferred
over fair value of identified net assets acquired is assigned to goodwill.
Following are the individual financial records for these two companies for the year ended December 31,
2014.
Required:

119.Pritchett Company recently acquired three businesses, recognizing goodwill in each acquisition. Destin
has allocated its acquired goodwill to its three reporting units: Apple, Banana, and Carrot. Pritchett
provides the following information in performing the 2013 annual review for impairment:
Which of Pritchett's reporting units require both steps to test for goodwill impairment?
120.Pritchett Company recently acquired three businesses, recognizing goodwill in each acquisition. Destin
has allocated its acquired goodwill to its three reporting units: Apple, Banana, and Carrot. Pritchett
provides the following information in performing the 2013 annual review for impairment:
How much goodwill impairment should Pritchett report for 2013?

121.On 4/1/11, Sey Mold Corporation acquired 100% of DotDot.Com for $2,000,000 cash. On the date of
acquisition, DotDot's net book value was $900,000. DotDot's assets included land that was undervalued
by $300,000, a building that was undervalued by $400,000, and equipment that was overvalued by
$50,000. The building had a remaining useful life of 8 years and the equipment had a remaining useful
life of 4 years. Any excess fair value over consideration transferred is allocated to an undervalued patent
and is amortized over 5 years.