LL %23 SI Angela Corporation (a private company) acquired all of the outstanding voting stock of Eddy Tech, Inc., on January 1, 2021, in exchange for $9,000,000 in cash. At the acquisition date, Eddy Tech's stockholders' equity was $7,200,000 including retained earnings of At the acquisition date, Angela prepared the following fair value allocation schedule for its newly acquired subsidiary: Consideration transferred Eddy s stockholder's equity Excess fair over book value to patented technology (5-year remaining life) to trade names (indefinite remaining life) to equipment (8-year remaining life) 000 0006 $1,800,000 $150,000 500,000 0000 000 00 000 00 0 At the end of 2021, Angela and Eddy Tech report the following amounts from their individually maintained account balances, before consideration of their parent-subsidiary relationship. Parentheses indicate a credit balance. Angela Eddy Tech Sales 000 008 000 000 4,200,000 Cost of goods sold Depreciation expense Amortization expense Other operating expenses 000 0000 53,750 000s (986, 250) Net income Required: Prepare a 2021 consolidated income statement for Angela and its subsidiary Eddy Tech. Assume that Angela, as a private company, elects to amortize goodwill over a 10-year period. Mc Graw < Prev 4 of 4 Type here to search 近。 dy SUI del f5 OLJ f3 144 3 %23 %3D 5. R ned WN A X
LL %23 SI Angela Corporation (a private company) acquired all of the outstanding voting stock of Eddy Tech, Inc., on January 1, 2021, in exchange for $9,000,000 in cash. At the acquisition date, Eddy Tech's stockholders' equity was $7,200,000 including retained earnings of At the acquisition date, Angela prepared the following fair value allocation schedule for its newly acquired subsidiary: Consideration transferred Eddy s stockholder's equity Excess fair over book value to patented technology (5-year remaining life) to trade names (indefinite remaining life) to equipment (8-year remaining life) 000 0006 $1,800,000 $150,000 500,000 0000 000 00 000 00 0 At the end of 2021, Angela and Eddy Tech report the following amounts from their individually maintained account balances, before consideration of their parent-subsidiary relationship. Parentheses indicate a credit balance. Angela Eddy Tech Sales 000 008 000 000 4,200,000 Cost of goods sold Depreciation expense Amortization expense Other operating expenses 000 0000 53,750 000s (986, 250) Net income Required: Prepare a 2021 consolidated income statement for Angela and its subsidiary Eddy Tech. Assume that Angela, as a private company, elects to amortize goodwill over a 10-year period. Mc Graw < Prev 4 of 4 Type here to search 近。 dy SUI del f5 OLJ f3 144 3 %23 %3D 5. R ned WN A X
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:LL
%23
SI
Angela Corporation (a private company) acquired all of the outstanding voting stock of Eddy Tech, Inc., on January 1, 2021, in exchange
for $9,000,000 in cash. At the acquisition date, Eddy Tech's stockholders' equity was $7,200,000 including retained earnings of
At the acquisition date, Angela prepared the following fair value allocation schedule for its newly acquired subsidiary:
Consideration transferred
Eddy s stockholder's equity
Excess fair over book value
to patented technology (5-year remaining life)
to trade names (indefinite remaining life)
to equipment (8-year remaining life)
000 0006
$1,800,000
$150,000
500,000
0000
000 00
000 00 0
At the end of 2021, Angela and Eddy Tech report the following amounts from their individually maintained account balances, before
consideration of their parent-subsidiary relationship. Parentheses indicate a credit balance.
Angela
Eddy Tech
Sales
000 008
000
000
4,200,000
Cost of goods sold
Depreciation expense
Amortization expense
Other operating expenses
000
0000
53,750
000s
(986, 250)
Net income
Required:
Prepare a 2021 consolidated income statement for Angela and its subsidiary Eddy Tech. Assume that Angela, as a private company,
elects to amortize goodwill over a 10-year period.
Mc
Graw
< Prev
4 of 4
Type here to search
近。
dy
SUI
del
f5
OLJ
f3
144
3
%23
%3D
5.
R
ned
WN A X
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