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b. Land $ 60,000 c. Buildings and Equipment $550,000 $470,000 d. Fair value of consideration given by Prize Fair value of noncontrolling interest 117,500 Total fair value $587,500 Book value of Statue's net assets $450,000 Fair value increment for: Inventory 20,000 Land (10,000) Buildings and equipment (net) Fair value of identifiable net assets 70,000 (530,000) Goodwill $ 57,500 e. Investment in Statue Corporation: None would be reported;

b. Land $ 60,000 c. Buildings and Equipment $550,000 $470,000 d. Fair value of consideration given by Prize Fair value of noncontrolling interest 117,500 Total fair value $587,500 Book value of Statue's net assets $450,000 Fair value increment for: Inventory 20,000 Land (10,000) Buildings and equipment (net) Fair value of identifiable net assets 70,000 (530,000) Goodwill $ 57,500 e. Investment in Statue Corporation: None would be reported;

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Computation of Consolidated Balances

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