On June 30, 2021, Plaster, Inc., paid $876,000 for 80 percent of Stucco Company's outstanding stock. Plasterassessed the acquisition-date fair value of the 20 percent noncontrolling interest at $219,000. At acquisition date,Stucco reported the following book values for its assets and liabilities:$ 57,300121,500194,40062,400167,900287,600(33,500)CashAccounts receivableInventoryLandBuildingsEquipmentAccounts payable(Parentheses indicate credit balances.)On June 30, Plaster allocated the excess acquisition-date fair value over book value to Stucco's assets as follows:Equipment (3-year remaining life)Database (10-year remaining life)$ 71,600165,800 At the end of 2021, the following comparative (2020 and 2021) balance sheets and consolidated income statementwere available:Plaster, Inc.December 31,ConsolidatedDecember 31,20202021228,700457,100677,800345,000348,6001,927,500157,510$ 4,142,210Cash40,500340,800390,900282,600230,700$Accounts receivable (net)InventoryLandBuildings (net)Equipment (net)1,695,000DatabaseTotal assets$ 2,980,500Accounts payableLong-term liabilities75,600378,000$101,1001,106,4801,701,000241,400Common stock1,701,000Noncontrolling interestRetained earnings825,900$ 2,980,500992,230$ 4,142,210Total liabilities and equitiesPLASTER, INC., AND SUBSIDIARY STUCCO COMPANYConsolidated Income StatementFor the Year Ended December 31, 2021Revenues$ 1,149,000$ 695,900176,7008,2909,300Cost of goods soldDepreciationDatabase amortizationInterest and other expenses890,190Consolidated net income2$258,810Additional Information for 2021• On December 1, Stucco paid a $50,400 dividend. During the year, Plaster paid $60,000 in dividends.• During the year, Plaster issued $728,480 in long-term debt at par.• Plaster reported no asset purchases or dispositions other than the acquisition of Stucco.Prepare a 2021 consolidated statement of cash flows for Plaster and Stucco. Use the indirect method of reportingcash flows from operating activities. (Negative amounts and amounts to be deducted should be indicated by aminus sign.)

The cash flow statement represents the cash inflow and cash outflow of the company that includes the…

On June 30, 2021, Plaster, Inc., paid $876,000 for 80 percent of Stucco Company's outstanding stock. Plaster assessed the acquisition-date fair value of the 20 percent noncontrolling interest at $219,000. At acquisition date, Stucco reported the following book values for its assets and liabilities:

On June 30, 2021, Plaster, Inc., paid $876,000 for 80 percent of Stucco Company's outstanding stock. Plaster assessed the acquisition-date fair value of the 20 percent noncontrolling interest at $219,000. At acquisition date, Stucco reported the following book values for its assets and liabilities:

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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