Homework Help is Here – Start Your Trial Now!
Business
Accounting
On January 1, 2023, Pali Company acquired 75% of Silicon Company's voting stock for $44,300 in cash. The noncontrolling interest had an estimated fair value of $12,700. Silicon's assets and liabilities at th indefinite life identifiable intangibles valued at $21,000. Silicon's total shareholders' equity at January 1, 2023 was as follows: Capital stock $ 2,000 Retained earnings Accumulated other comprehensive income 2,900 100 $5,000 Total It is now December 31, 2025 (three years later). Identifiable intangibles impairment through the end of 2024 was $1,000 and goodwill impairment through the end of 2024 was $400. There is no impairmed 3036 al balon

On January 1, 2023, Pali Company acquired 75% of Silicon Company's voting stock for $44,300 in cash. The noncontrolling interest had an estimated fair value of $12,700. Silicon's assets and liabilities at th indefinite life identifiable intangibles valued at $21,000. Silicon's total shareholders' equity at January 1, 2023 was as follows: Capital stock $ 2,000 Retained earnings Accumulated other comprehensive income 2,900 100 $5,000 Total It is now December 31, 2025 (three years later). Identifiable intangibles impairment through the end of 2024 was $1,000 and goodwill impairment through the end of 2024 was $400. There is no impairmed 3036 al balon

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

p

On January 1, 2023, Pali Company acquired 75% of Silicon Company's voting stock for $44,300 in cash. The noncontrolling interest had an estimated fair value of $12,700. Silicon's assets and liabilities at the date of acquisition were reported at amounts approximating fair value, but it had previously unreported indefinite life identifiable intangibles valued at $21,000. Silicon's total shareholders' equity at January 1, 2023 was as follows: Capital stock $ 2,000 Retained earnings 2,900 100 Accumulated other comprehensive income Total $ 5,000 It is now December 31, 2025 (three years later). Identifiable intangibles impairment through the end of 2024 was $1,000 and goodwill impairment through the end of 2024 was $400. There is no impairment of either identifiable intangibles or goodwill in 2025. Pali uses the complete equity method to account for its investment. December 31, 2025 trial balances for Pali and Silicon follow. Pali Dr (Cr) Silicon Dr (Cr) $5,000 $1,000 42,000 28,000 Current assets Property, net Intangibles Investment in Silicon Goodwill Liabilities Capital stock RE, beginning AOCI, beginning Sales revenue Equity in net income of Silicon (1,350) Equity in OCI of Silicon (15) Cost of goods sold Operating expenses Other comprehensive income Total 45,732 Select one: (53,887) (20,664) (15,000) (2,000) (19,680) (4,400) (1,100) (116) (25,000) (14,000) 20,000 9,000 4,000 3,200 (700) $0 (20) $0 What is the initial goodwill related to this acquisition?
Transcribed Image Text:On January 1, 2023, Pali Company acquired 75% of Silicon Company's voting stock for $44,300 in cash. The noncontrolling interest had an estimated fair value of $12,700. Silicon's assets and liabilities at the date of acquisition were reported at amounts approximating fair value, but it had previously unreported indefinite life identifiable intangibles valued at $21,000. Silicon's total shareholders' equity at January 1, 2023 was as follows: Capital stock $ 2,000 Retained earnings 2,900 100 Accumulated other comprehensive income Total $ 5,000 It is now December 31, 2025 (three years later). Identifiable intangibles impairment through the end of 2024 was $1,000 and goodwill impairment through the end of 2024 was $400. There is no impairment of either identifiable intangibles or goodwill in 2025. Pali uses the complete equity method to account for its investment. December 31, 2025 trial balances for Pali and Silicon follow. Pali Dr (Cr) Silicon Dr (Cr) $5,000 $1,000 42,000 28,000 Current assets Property, net Intangibles Investment in Silicon Goodwill Liabilities Capital stock RE, beginning AOCI, beginning Sales revenue Equity in net income of Silicon (1,350) Equity in OCI of Silicon (15) Cost of goods sold Operating expenses Other comprehensive income Total 45,732 Select one: (53,887) (20,664) (15,000) (2,000) (19,680) (4,400) (1,100) (116) (25,000) (14,000) 20,000 9,000 4,000 3,200 (700) $0 (20) $0 What is the initial goodwill related to this acquisition?
Expert Solution
steps

Step by step

Solved in 3 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