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

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ISBN:9781259964947

Author:Libby

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Chapter1: Financial Statements And Business Decisions

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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

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:
$ 57,300
121,500
194,400
62,400
167,900
287,600
(33,500)
Cash
Accounts receivable
Inventory
Land
Buildings
Equipment
Accounts 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)
$ 71,600
165,800

At the end of 2021, the following comparative (2020 and 2021) balance sheets and consolidated income statement
were available:
Plaster, Inc.
December 31,
Consolidated
December 31,
2020
2021
228,700
457,100
677,800
345,000
348,600
1,927,500
157,510
$ 4,142,210
Cash
40,500
340,800
390,900
282,600
230,700
$
Accounts receivable (net)
Inventory
Land
Buildings (net)
Equipment (net)
1,695,000
Database
Total assets
$ 2,980,500
Accounts payable
Long-term liabilities
75,600
378,000
$
101,100
1,106,480
1,701,000
241,400
Common stock
1,701,000
Noncontrolling interest
Retained earnings
825,900
$ 2,980,500
992,230
$ 4,142,210
Total liabilities and equities
PLASTER, INC., AND SUBSIDIARY STUCCO COMPANY
Consolidated Income Statement
For the Year Ended December 31, 2021
Revenues
$ 1,149,000
$ 695,900
176,700
8,290
9,300
Cost of goods sold
Depreciation
Database amortization
Interest and other expenses
890,190
Consolidated net income
2$
258,810
Additional 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 reporting
cash flows from operating activities. (Negative amounts and amounts to be deducted should be indicated by a
minus sign.)

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