Homework Help is Here – Start Your Trial Now!
Business
Accounting
On January 1, 2017, Best-western Co. acquired 80 percent of B- Gulf Company's common stock for $160,000 cash. The fair value of the noncontrolling interest at that date was determined to be $40,000. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition: Best western B- Co Corp. $ 60,000 80,000 90,000 100,000 200,000 Gulf Corp. $ 20,000 30,000 40,000 40,000 150,000 Cash Accounts Receivable Inventory Land Buildings and Equipment Less: Accumulated Depreciation (80,000) 160,000 $ 610,000 $ 230,000 (50,000) Investment in B-Gull Co. Total Assets Accounts Payable Bonds Payable $ 110,000 95,000 200,000 205,000 $ 610,000 $ 30,000 40,000 40,000 120,000 $ 230,000 Common Stock Retained Earnings Total Liabilities and Equity On January 1, 2017, the book values of B- Gulf 's net assets and liabilities equal fair value except for inventory, which had a fair value of $45,000, and land, which had a fair value of $60,000.

On January 1, 2017, Best-western Co. acquired 80 percent of B- Gulf Company's common stock for $160,000 cash. The fair value of the noncontrolling interest at that date was determined to be $40,000. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition: Best western B- Co Corp. $ 60,000 80,000 90,000 100,000 200,000 Gulf Corp. $ 20,000 30,000 40,000 40,000 150,000 Cash Accounts Receivable Inventory Land Buildings and Equipment Less: Accumulated Depreciation (80,000) 160,000 $ 610,000 $ 230,000 (50,000) Investment in B-Gull Co. Total Assets Accounts Payable Bonds Payable $ 110,000 95,000 200,000 205,000 $ 610,000 $ 30,000 40,000 40,000 120,000 $ 230,000 Common Stock Retained Earnings Total Liabilities and Equity On January 1, 2017, the book values of B- Gulf 's net assets and liabilities equal fair value except for inventory, which had a fair value of $45,000, and land, which had a fair value of $60,000.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

I know the final answers of it but would like to know how to get those. So, Please inlcude all steps of calculations for my reference. Thanks! 

The following data applies to Questions 1-7 On January 1, 2017, Best-western Co. acquired 80 percent of B- Gulf Company's common stock for $160,000 cash. The fair value of the noncontrolling interest at that date was determined to be $40,000. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition: Best western B- Co Corp. $ 60,000 80,000 90,000 100,000 200,000 Gulf Corp. $ 20,000 30,000 40,000 40,000 150,000 Cash Accounts Receivable Inventory Land Buildings and Equipment Less: Accumulated (80,000) 160,000 $ 610,000 Depreciation (50,000) Investment in B-Gull Co. $ 230,000 Total Assets $ 110,000 95,000 200,000 205,000 $ 610,000 $ 30,000 40,000 40,000 120,000 $ 230,000 Accounts Payable Bonds Payable Common Stock Retained Earnings Total Liabilities and Equity On January 1, 2017, the book values of B- Gulf 's net assets and liabilities equal fair value except for inventory, which had a fair value of $45,000, and land, which had a fair value of $60,000.
Transcribed Image Text:The following data applies to Questions 1-7 On January 1, 2017, Best-western Co. acquired 80 percent of B- Gulf Company's common stock for $160,000 cash. The fair value of the noncontrolling interest at that date was determined to be $40,000. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition: Best western B- Co Corp. $ 60,000 80,000 90,000 100,000 200,000 Gulf Corp. $ 20,000 30,000 40,000 40,000 150,000 Cash Accounts Receivable Inventory Land Buildings and Equipment Less: Accumulated (80,000) 160,000 $ 610,000 Depreciation (50,000) Investment in B-Gull Co. $ 230,000 Total Assets $ 110,000 95,000 200,000 205,000 $ 610,000 $ 30,000 40,000 40,000 120,000 $ 230,000 Accounts Payable Bonds Payable Common Stock Retained Earnings Total Liabilities and Equity On January 1, 2017, the book values of B- Gulf 's net assets and liabilities equal fair value except for inventory, which had a fair value of $45,000, and land, which had a fair value of $60,000.
Required Based on the information provided, find the amount of: (Please show your calculations). 1. The total inventory will be reported in the consolidated balance sheet prepared immediately after the business combination? 2. The goodwill reported in the consolidated balance sheet prepared immediately after the business combination? 3. The total assets will be reported in the consolidated balance sheet prepared immediately after the business combination? 4. The total liabilities will be reported in the consolidated balance sheet prepared immediately after the business combination? 5. The noncontrolling interest in the consolidated balance sheet prepared immediately after the business combination? 6. The consolidated retained earnings will be reported immediately after the business combination? 7. The total stockholders' equity in the consolidated balance sheet prepared immediately after the business combination?
Transcribed Image Text:Required Based on the information provided, find the amount of: (Please show your calculations). 1. The total inventory will be reported in the consolidated balance sheet prepared immediately after the business combination? 2. The goodwill reported in the consolidated balance sheet prepared immediately after the business combination? 3. The total assets will be reported in the consolidated balance sheet prepared immediately after the business combination? 4. The total liabilities will be reported in the consolidated balance sheet prepared immediately after the business combination? 5. The noncontrolling interest in the consolidated balance sheet prepared immediately after the business combination? 6. The consolidated retained earnings will be reported immediately after the business combination? 7. The total stockholders' equity in the consolidated balance sheet prepared immediately after the business combination?
Expert Solution
steps

Step by step

Solved in 4 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Consolidations
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS