Problem 4-18 (Static) (LO 4-2, 4-4, 4-5)On January 1, 2024, Johnsonville Enterprises, Incorporated, acquired 80 percent of Stayer Company's outstanding common shares inexchange for $3,000,000 cash. The price paid for the 80 percent ownership interest was proportionately representative of the fairvalue of all of Stayer's shares.At acquisition date, Stayer's books showed assets of $4,200,000 and liabilities of $1,600,000. The recorded assets and liabilities hadfair values equal to their individual book values except that a building (10-year remaining life) with book value of $195,000 had anappraised fair value of $345,000. Stayer's books showed a $175,500 carrying amount for this building at the end of 2024.Also, at acquisition date Stayer possessed unrecorded technology processes (zero book value) with an estimated fair value of$1,000,000 and a 20-year remaining life. For 2024, Johnsonville reported net income of $650,000 (before recognition of Stayer'sincome), and Stayer separately reported earnings of $350,000. During 2024, Johnsonville declared dividends of $85,000 and Stayerdeclared $50,000 in dividends.Required:Compute the amounts that Johnsonville Enterprises should report in its December 31, 2024, consolidated financial statements for thefollowing items:a. Stayer's building (net of accumulated depreciation)b. Stayer's technology processes (net of accumulated amortization)c. Net income attributable to the noncontrolling interestd. Net income attributable to controlling intereste. Noncontrolling interest in Stayer

The assets of a subsidiary are normally stated at their fair value, which is the projected market…

On January 1, 2024, Johnsonville Enterprises, Inco exchange for $3,000,000 cash. The price paid for value of all of Stayer's shares. At acquisition date, Stayer's books showed assets fair values equal to their individual book values ex appraised fair value of $345,000. Stayer's books s

On January 1, 2024, Johnsonville Enterprises, Inco exchange for $3,000,000 cash. The price paid for value of all of Stayer's shares. At acquisition date, Stayer's books showed assets fair values equal to their individual book values ex appraised fair value of $345,000. Stayer's books s

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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