None E5-5 Balance Sheet WorksheetProblem Company owns 90 percent of Solution Dairy's stock. The balance sheets of the twocompanies immediately after the Solution acquisition showed the following amounts:ProblemCompanySolutionDairyCash & ReceivablesInventoryLandBuildings & Equipment (net)Investment in Solution DairyTotal AssetsCurrent PayablesLong-Term LiabilitiesCommon Stock$ 130,000210,00070,000390,000$ 70,00090,00040,000220,000270,000$1,070,000$420,000$80,000$ 40,000200,000100,000400,00060,000Retained Earnings390,000220,000Total Liabilities & Stockholders' Equity$1,070,000$420,000The fair value of the noncontrolling interest at the date of acquisition was determined to be $30,000.The full amount of the increase over book value is assigned to land held by Solution. At the dateof acquisition, Solution owed Problem $8,000 plus $900 accrued interest. Solution had recordedthe accrued interest, but Problem had not.RequiredPrepare and complete a consolidated balance sheet worksheet.

STEP 1: Get the fair value of net asset of the acquired company (solution): NCI 10% Fair…

Answered: E5-5 Balance Sheet Worksheet Problem…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Problem 1Q

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