Fizer Pharmaceutical paid $78 million on January 2, 2021, for 6 million shares of Carne Cosmetics common sto represents a 25% interest in the net assets of Carne and gave Fizer the ability to exercise significant influence Fizer received dividends of $2 per share on December 21, 2021, and Carne reported net income of $28 million December 31, 2021. The fair value of Carne's common stock at December 31, 2021, was $28.50 per share. - The book value of Carne's net assets was $192 million. -The fair value of Carne's depreciable assets exceeded their book value by $48 million. These assets had an useful life of twelve years. - The remainder of the excess of the cost of the investment over the book value of net assets purchased was "equired: Complete the table below and prepare the appropriate journal entries related to the investment during 2021. Complete this question by entering your answers in the tabs below.

Fizer Pharmaceutical paid $78 million on January 2, 2021, for 6 million shares of Carne Cosmetics common sto represents a 25% interest in the net assets of Carne and gave Fizer the ability to exercise significant influence Fizer received dividends of $2 per share on December 21, 2021, and Carne reported net income of $28 million December 31, 2021. The fair value of Carne's common stock at December 31, 2021, was $28.50 per share. - The book value of Carne's net assets was $192 million. -The fair value of Carne's depreciable assets exceeded their book value by $48 million. These assets had an useful life of twelve years. - The remainder of the excess of the cost of the investment over the book value of net assets purchased was "equired: Complete the table below and prepare the appropriate journal entries related to the investment during 2021. Complete this question by entering your answers in the tabs below.

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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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

Fizer Pharmaceutical paid $78 million on January 2, 2021, for 6 million shares of Carne Cosmetics common stock. The investment
represents a 25% interest in the net assets of Carne and gave Fizer the ability to exercise significant influence over Carne's operations.
Fizer received dividends of $2 per share on December 21, 2021, and Carne reported net income of $28 million for the year ended
December 31, 2021. The fair value of Carne's common stock at December 31, 2021, was $28.50 per share.
. The book value of Carne's net assets was $192 million.
. The fair value of Carne's depreciable assets exceeded their book value by $48 million. These assets had an average remaining
useful life of twelve years.
. The remainder of the excess of the cost of the investment over the book value of net assets purchased was attributable to goodwill.
Required:
Complete the table below and prepare the appropriate journal entries related to the investment during 2021.
Complete this question by entering your answers in the tabs below.
Calculation
General
Journal
Complete the table below. (Enter your answers in millions, (i.e., 10,000,000 should be entered as 10)).
Investee Net
Assets
Net Assets
Purchased
$
($ in millions)
Purchase Price
Fair Value Carne's assets
Book Value Carne's assets
Depreciation adjustment:
Investment revenue
X
X
Ownership
Interest
Years
%
%
Calculation
=
78
Adjustment
Difference
General Journal >
Attributable to: +

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