1.Adams owns 80% of Williams and has a carrying value of the investment at January 1, 2020 of $600,000. On that date Adams sells half its shares for $250,000. What is the journal entry recorded?
1.Adams owns 80% of Williams and has a carrying value of the investment at January 1, 2020 of $600,000. On that date Adams sells half its shares for $250,000. What is the
2 Same facts as #1, except Adams sells 20% of its investment for $150,000 reducing its ownership to 60%. What journal entry is recorded by Williams at that date
3. Harry purchases 80% of David by paying $50 a share for 40,000 shares of David. The remaining 10,000 shares of David are worth $40 per share both before and after the acquisition. Assume that 100% of the fair value of net assets acquired (FVNAA) of David at date of acquisition is $2,200,000.
- Calculate
Goodwill - How much Goodwill is allocated to the controlling interest and the noncontrolling interest
4.Felix pays $1,000,000 to acquire 80% of Unger, assume there is no control premium. At acquisition date the FVNAA of Unger is $1,100,000. Calculate any Goodwill or Gain on Bargain Purchase that will be recorded in consolidation.
5.Parent buys building (useful life 10 years) for $3,000,000 on January 1, 2020. On that same date, parent sells building to 80% owned subsidiary for $4.000,000. Subsidiary will use the same 10year useful life.
- How much
Depreciation Expense will the subsidiary record in 2020 - How much is consolidated Depreciation expense in 2020
- What two worksheet entries are required for year end 2020 (hint: entries TA and ED
6. Davis owns 70% of Free. In 2020 Davis reports Sales of $200,000 which include third party sales of $160,000 and intercompany sales of $40,000. Cost of Goods Sold for Davis are $80,000. Free reports sales of $150,000 of which $50,000 are intercompany. How much is Consolidated Sales?
7. Hand owns 90% of Finger. In 2015 Hand purchases Land from third parties for $500,000. On January 1, 2018 Hand sells Land to Finger for $800,000. Finger holds the Land until December 31, 2020 and then sells it to third parties for $2,000,000.
- How much is Consolidated Gain on Sale for the year ended December 31, 2018
- How much is Consolidated Land at December 31, 2018
- What consolidation worksheet entry is required at December 31, 2018
- What consolidation worksheet entry is required at December 31, 2019
- What consolidation worksheet entry is required at December 31, 2020
- How much is Consolidated Gain on sale for the year ended December 31, 2020
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