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terest Duri Sale of an Interest During Accounting Period , Upstream Building Sale the Deal net assets for preto Save the diary of isac SAA acquired...

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Sale of an interest during accounting period and upstream building sale

WhatsApp Image 2018-11-28 at 14.10.25.jpeg

terest Duri
Sale of an Interest During Accounting Period , Upstream Building Sale
the Deal net assets for preto Save the diary of isac SAA acquired for $3 .60 .0 on January 1 2014
s of Piero
acquisition date were $3 800 900 . The book value identifiable
Wels and liabilities of Piero SA A is the same as the fair value . The trial balance of both companies
for the year ended 2014 is as follows ( in thousands )
identifiable
Debits
sac SAN
Accounts receivable
Piero SAA
Inventory
Land
5 200
5 700
Equipment
5 700
5 210 0
Investment in Piero SAA
$2800
Cost of sales
5 3090
$ 1.400
Other expenses
5 0
5 5800
Dividends
2.800
5 700
S 200
$ 200
5 17:075
$ 9.700
Credits
Accounts payable
Common stock
1900
Additional- paid in capital
8 5.0 00
2000
Retained Earnings
8 50
8 0
Sales
5 2.500
$ 1800
Income from Piero SAA
$ 7 , 400
$ 4, 500
8 225
Total
$ 17 075
59.700
ADDITIONAL INFORMATION
1 . On March 31 , 2014 , Isac SA A sold 20 percent of its ownership in Piero SA A for $900 000
2 . On July 1 2013 , Piero SAA sold equipment to Isac SAA , with a profit of $500 000 . The equipment has
remaining useful life of 5 years and
3 . The only dividend declared during the year by Piero SAA was on A
on August 1 2014
4 . Piero SAA income and expenses occurred proportionately during the year
EQUIRED : Prepare a workpaper to consolidate the financial statement of Isac SA A and subsidiary for
the year ended December 31 , 2014

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