(a) Prepare a schedule of changes to the acquisition differential for the four year period ending December 31, Year 7. (Leave no cells blank- be certain to enter "0" wherever required. Omit $ sign in your response. Negative/Deductible amounts should be indicated by a minus sign.) Inventory Equipment (6 years) Patents (8 years) Long-term debt (5 years) Goodwill Balance Dec. 1 Year 3 S S 118400 0 0 95000 3000 Changes Consolidated net income attributable to the parent Consolidated retained earnings Year 4, 546 $ Year 7 $ (b) Calculate consolidated net income attributable to the parent, ending retained earnings and non-controlling interest at December 31, Year 7. (Omit $ sign in your response.) Balance Dec. 31 Year 7 III
(a) Prepare a schedule of changes to the acquisition differential for the four year period ending December 31, Year 7. (Leave no cells blank- be certain to enter "0" wherever required. Omit $ sign in your response. Negative/Deductible amounts should be indicated by a minus sign.) Inventory Equipment (6 years) Patents (8 years) Long-term debt (5 years) Goodwill Balance Dec. 1 Year 3 S S 118400 0 0 95000 3000 Changes Consolidated net income attributable to the parent Consolidated retained earnings Year 4, 546 $ Year 7 $ (b) Calculate consolidated net income attributable to the parent, ending retained earnings and non-controlling interest at December 31, Year 7. (Omit $ sign in your response.) Balance Dec. 31 Year 7 III
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
N1.
Account
![Required:
(a) Prepare a schedule of changes to the acquisition differential for the four year period ending December 31, Year 7. (Leave no cells
blank be certain to enter "0" wherever required. Omit S sign in your response. Negative/Deductible amounts should be indicated
by a minus sign.)
Inventory
Equipment (6 years)
Patents (8 years)
Long-term debt (5 years).
Goodwill
Balance
Dec. 1
Year 3
$
118400
0
0
95000
3000
Changes
Consolidated net income attributable to the parent
Consolidated retained earnings
Non-controlling interest
Year 4, 546
$
Year 7
Balance
Dec. 31
Year 7
$
(b) Calculate consolidated net income attributable to the parent, ending retained earnings and non-controlling interest at December 31,
Year 7. (Omit $ sign in your response.)
www.
S](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F10d14acb-fdb4-4aa7-af08-08422a840293%2F5498f79e-54d9-40bb-9dad-701e318a6d7b%2F0ktkl4d_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required:
(a) Prepare a schedule of changes to the acquisition differential for the four year period ending December 31, Year 7. (Leave no cells
blank be certain to enter "0" wherever required. Omit S sign in your response. Negative/Deductible amounts should be indicated
by a minus sign.)
Inventory
Equipment (6 years)
Patents (8 years)
Long-term debt (5 years).
Goodwill
Balance
Dec. 1
Year 3
$
118400
0
0
95000
3000
Changes
Consolidated net income attributable to the parent
Consolidated retained earnings
Non-controlling interest
Year 4, 546
$
Year 7
Balance
Dec. 31
Year 7
$
(b) Calculate consolidated net income attributable to the parent, ending retained earnings and non-controlling interest at December 31,
Year 7. (Omit $ sign in your response.)
www.
S
![On December 31, Year 3, Mueller Corp, acquired 80% of the outstanding shares of Wilson Inc. for a total cost of $243,000. The carrying
amount of Wilson's assets, liabilities, and equity was equal to fair value except for the following:
Inventory
Equipment, net
Patent
Long-term debt
Common shares
Retained earnings
Carrying
Amount
Dividend income
Net income
Common shares
Retained earnings
$ 60,300
273,000
183,000
178,000
42,600
Fair Value
S 68,600
279,008
40,600
160,600
As at December 31, Year 3, the equipment and patent had an estimated useful life of six and eight years, respectively. The long-term
debt is due on January 1, Year 9. There was a goodwill impairment loss of $3,000 in Year There were no other impairment losses.
Mueller uses the cost method to account for its investment in Wilson. The book values of selected accounts for the year ended
December 31, Year 7 were as follows:
Mueller
$ 12,300
?
7
Wilson
62,600 $ 26,600
101,500
178,000
256,000
116,000
4
Required:
(a) Prepare a schedule of changes to the acquisition differential for the four year period ending December 31, Year 7. (Leave no cells
blank be certain to enter "0" wherever required. Omit $ sign in your response. Negative/Deductible amounts should be indicated
by a minus sign.)
Activ](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F10d14acb-fdb4-4aa7-af08-08422a840293%2F5498f79e-54d9-40bb-9dad-701e318a6d7b%2Fnaz3n0n_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On December 31, Year 3, Mueller Corp, acquired 80% of the outstanding shares of Wilson Inc. for a total cost of $243,000. The carrying
amount of Wilson's assets, liabilities, and equity was equal to fair value except for the following:
Inventory
Equipment, net
Patent
Long-term debt
Common shares
Retained earnings
Carrying
Amount
Dividend income
Net income
Common shares
Retained earnings
$ 60,300
273,000
183,000
178,000
42,600
Fair Value
S 68,600
279,008
40,600
160,600
As at December 31, Year 3, the equipment and patent had an estimated useful life of six and eight years, respectively. The long-term
debt is due on January 1, Year 9. There was a goodwill impairment loss of $3,000 in Year There were no other impairment losses.
Mueller uses the cost method to account for its investment in Wilson. The book values of selected accounts for the year ended
December 31, Year 7 were as follows:
Mueller
$ 12,300
?
7
Wilson
62,600 $ 26,600
101,500
178,000
256,000
116,000
4
Required:
(a) Prepare a schedule of changes to the acquisition differential for the four year period ending December 31, Year 7. (Leave no cells
blank be certain to enter "0" wherever required. Omit $ sign in your response. Negative/Deductible amounts should be indicated
by a minus sign.)
Activ
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