View the step-by-step solution to:

# Acquisition details: The parent acquired 75% of the sub in 2012. the only differential is due to goodwill. The good will attributable to the parent...

Please show ALL formulas and do the Extra Credit portion as well. Everything should be linked up.

Acquisition details: The parent acquired 75% of the sub in 2012. the only differential is due to goodwill. The good will attributable to the parent is \$150. Pricing to the NCI is proportional. The goodwill has not impaired since acquisition date. ADDITIONAL INFORMATION Intercompany merchandise sales totalled \$200,000 during 2015. All intercompany balances have been paid except for \$40,000 in transit at December 31, 2015. Unrealized profits in S’s inventory of merchandise purchased from P were \$48,000 on December 31, 2014, and \$60,000 on December 31, 2015. S sold equipment with a six-year remaining life to P on January 3, 2013, at a gain of \$96,000. P still uses the equipment in its operations. P sold land to S on July 1, 2015, at a gain of \$40,000. S still holds the land at December 31, 2015. P sold a building to S on July 1, 2015, at a gain of \$80,000. The building has a 10-year remaining life and is still used by Sum. round above amounts to thousands. REQUIRED: Required: Carefully Follow and label each step. Show all work below on the spreadsheet tab. 1.Calculate the full amount of goodwill. Identify amounts attributable to the parent and the NCI 2. Analyze each intercompany transaction. Label as either upstream downstream. 3. Calculate Net income to the controlling interest for the year 2015 4. Verify the calculation of the balance in the acccount equity in sub 5. Prepare all elimination entries for 2015. 6. Complete the consolidating spreadsheet for the year ended 2015. earnings and record the parent company entries with respect to its investment during 2015
7. Answer questions on the blue tab the parent uses the equity method
Show entire document
Sign up to view the entire interaction

132 in column D is the depreciation on building and 80 is the upstream (gain) on sale of building. 115... View the full answer

### Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

### -

Educational Resources
• ### -

Study Documents

Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

Browse Documents