a. Inventory $140,000 b. Land $60,000 c. Buildings and Equipment $550,000 d. Fair value of consideration given by Prize $470,000 Fair value of noncontrolling interest 117,500 Total fair value $587,500 Book value of Statue's net assets Fair value increment for: Inventory Land Buildings and equipment (net) Fair value of identifiable net assets (530,000) Goodwill $57,500 e. Investment in Statue Corporation: None would be reported; the balance in the investment account is eliminated. $450,000 20,000 (10,000) 70,000
a. Inventory $140,000 b. Land $60,000 c. Buildings and Equipment $550,000 d. Fair value of consideration given by Prize $470,000 Fair value of noncontrolling interest 117,500 Total fair value $587,500 Book value of Statue's net assets Fair value increment for: Inventory Land Buildings and equipment (net) Fair value of identifiable net assets (530,000) Goodwill $57,500 e. Investment in Statue Corporation: None would be reported; the balance in the investment account is eliminated. $450,000 20,000 (10,000) 70,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:a. Inventory
$140,000
b. Land
$60,000
c. Buildings and Equipment $550,000
d. Fair value of consideration given by Prize
$470,000
Fair value of noncontrolling interest
117,500
Total fair value
$587,500
Book value of Statue's net assets
Fair value increment for:
Inventory
Land
Buildings and equipment (net)
Fair value of identifiable net assets
(530,000)
Goodwill
$57,500
e. Investment in Statue Corporation: None would be reported;
the balance in the investment account is eliminated.
f. Noncontrolling Interest = FV of the NCI
$450,000
20,000
(10,000)
70,000
$117,500
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