49. Consolidation on date of acquisition-Noncontrolling in The excess of the total fair value of the controlling and noncontrolling interests over the book value of the Assume a parent company acquires a 75% interest in its subsidiary for a purchase price of $1,097.250, its book value, an unrecorded patent with a fair value of $171,000, and Goodwill of $294,500. There is no subsidiary's Stockholders' Equity is assigned to a building (in PPE, net) that is worth $104,500 more than control premium, so goodwill is assigned proportionally to the controlling and noncontrolling interests. date parent and the subsidiary report the following pre-consolidation balance sheets on the acquisi- tion date: Barent
49. Consolidation on date of acquisition-Noncontrolling in The excess of the total fair value of the controlling and noncontrolling interests over the book value of the Assume a parent company acquires a 75% interest in its subsidiary for a purchase price of $1,097.250, its book value, an unrecorded patent with a fair value of $171,000, and Goodwill of $294,500. There is no subsidiary's Stockholders' Equity is assigned to a building (in PPE, net) that is worth $104,500 more than control premium, so goodwill is assigned proportionally to the controlling and noncontrolling interests. date parent and the subsidiary report the following pre-consolidation balance sheets on the acquisi- tion date: Barent
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please answer fast
![ZBO
X
Cash...
Accounts receivable
Inventory...
LOT
49. Consolidation on date of acquisition-Noncontrolling interes
The excess of the total fair value of the controlling and noncontrolling interests over the book value of the
Assume a parent company acquires a 75% interest in its subsidiary for a purchase price of $1,097.250.
its book value, an unrecorded patent with a fair value of $171,000, and Goodwill of $294,500. There is no
subsidiary's Stockholders' Equity is assigned to a building (in PPE, net) that is worth $104,500 more than
control premium, so goodwill is assigned proportionally to the controlling and noncontrolling interests.
The parent and the subsidiary report the following pre-consolidation balance sheets on the acquisi-
tion date:
Equity investment.
Property, plant, and equipment, net
Total assets...
Parent
Subsidiary
$ 855,000 $ 190,000
742,900
313,500
403,750
1,045,000
1,097,250
3,800,000
$7,540,150
760,000.
$1,667,250
Current liabilities...
Long-term liabilities
Common stock.
Additional paid-in capital.
Retained earnings
Total liabilities and equity
******
a.
Prepare the consolidation entries on the acquisition date.
b. Prepare the consolidation spreadsheet on the acquisition date.
Parent Subsidiary
$ 760,000 $ 299,250
2,850,000
475,000
855,000
665,000
2,410,150
$7,540,150
85,500
114,000
693,500
$1,667,250](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9bf988cd-aed2-4ce6-b308-cb84c8c1b977%2F0fd5ba8b-4307-4d5d-8b8c-7ae6bf80552a%2Fvrxwfk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:ZBO
X
Cash...
Accounts receivable
Inventory...
LOT
49. Consolidation on date of acquisition-Noncontrolling interes
The excess of the total fair value of the controlling and noncontrolling interests over the book value of the
Assume a parent company acquires a 75% interest in its subsidiary for a purchase price of $1,097.250.
its book value, an unrecorded patent with a fair value of $171,000, and Goodwill of $294,500. There is no
subsidiary's Stockholders' Equity is assigned to a building (in PPE, net) that is worth $104,500 more than
control premium, so goodwill is assigned proportionally to the controlling and noncontrolling interests.
The parent and the subsidiary report the following pre-consolidation balance sheets on the acquisi-
tion date:
Equity investment.
Property, plant, and equipment, net
Total assets...
Parent
Subsidiary
$ 855,000 $ 190,000
742,900
313,500
403,750
1,045,000
1,097,250
3,800,000
$7,540,150
760,000.
$1,667,250
Current liabilities...
Long-term liabilities
Common stock.
Additional paid-in capital.
Retained earnings
Total liabilities and equity
******
a.
Prepare the consolidation entries on the acquisition date.
b. Prepare the consolidation spreadsheet on the acquisition date.
Parent Subsidiary
$ 760,000 $ 299,250
2,850,000
475,000
855,000
665,000
2,410,150
$7,540,150
85,500
114,000
693,500
$1,667,250
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