Assets Liabilities and Equity $ 30,000 Current liabilities. Long-term liabilities Common stock ($10 par). Retained earnings $ 30,000 40,000 150,000 50,000 Cash Inventory Property, plant, and equipment. Accumulated depreciation 30,000 300,000 (90,000) $270,000 Total assets.. Total liabilities and equity $270,000 Comparative balance sheet data are as follows: December 31, 2017 (Consolidated) December 31, 2016 (Parent Only) $ 100,000 60,000 950,000 (360,000) 2$ 84,200 1,346,000 (575,000) 86,250 Cash 95,000 Inventory Property, plant, and equipment. Accumulated depreciation Goodwill .. Current liabilities. Long-term liabilities . Noncontrolling interest Controlling interest: Common stock ($10 par). Additional paid-in capital in excess of par Retained earnings (80,000) (100,000) (115,000) (130,000) (63,250) (350,000) (50,000) (170,000) (400,000) (90,000) (238,200) Totals .. $ $
Duckworth Corporation purchases an 80% interest in Panda Corporation on January 1, 2017, in exchange for 5,000 Duckworth shares (market value of $18) plus $155,000 cash. The fair value of the NCI is proportionate to the price paid by Duckworth for its interest. The appraisal shows that some of Panda’s equipment, with a 4-year estimated remaining life, is undervalued by $20,000. The excess is attributed to
The following information relates to the activities of the two companies for 2017:
a. Panda pays off $10,000 of its long-term debt.
b. Duckworth purchases production equipment for $76,000.
c. Consolidated net income is $103,200; the NCI’s share is $5,000.
d. Duckworth pays $30,000 in dividends; Panda pays $15,000.
Prepare the consolidated statement of
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