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Required: (a) Prepare a schedule of changes to the acquisition differential for the four year period ending December 31, Year 7. (Leave no cells. blank be certain to enter "0" wherever required. Omit $ sign in your response. Negative/Deductible amounts should be indicated. by a minus sign.)

Required: (a) Prepare a schedule of changes to the acquisition differential for the four year period ending December 31, Year 7. (Leave no cells. blank be certain to enter "0" wherever required. Omit $ sign in your response. Negative/Deductible amounts should be indicated. by a minus sign.)

FINANCIAL ACCOUNTING
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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Subject: accounting 

On December 31, Year 3, Mueller Corp, acquired 80% of the outstanding shares of Wilson Inc. for a total cost of $243,000. The carrying amount of Wilson's assets, liabilities, and equity was equal to fair value except for the following: Inventory Equipment, net Patent Long-term debt Common shares Retained earnings Carrying Amount Dividend income Net income Common shares Retained earnings Fair Value $ 60,300 S 68,600 273,000 279,008 40,600 160,600 183,000 178,000 42,600 As at December 31, Year 3, the equipment and patent had an estimated useful life of six and eight years, respectively. The long-term debt is due on January 1, Year 9. There was a goodwill impairment loss of $3,000 in Year 5. There were no other impairment losses. Mueller uses the cost method to account for its investment in Wilson. The book values of selected accounts for the year ended December 31, Year 7 were as follows: ? 7 Mueller $ 12,300 Wilson 62,600 $ 26,600 101,500 178,000 256,000 116,000 4 Required: (a) Prepare a schedule of changes to the acquisition differential for the four year period ending December 31, Year 7. (Leave no cells blank be certain to enter "0" wherever required. Omit $ sign in your response. Negative/Deductible amounts should be indicated. by a minus sign.) Activ.
Transcribed Image Text:On December 31, Year 3, Mueller Corp, acquired 80% of the outstanding shares of Wilson Inc. for a total cost of $243,000. The carrying amount of Wilson's assets, liabilities, and equity was equal to fair value except for the following: Inventory Equipment, net Patent Long-term debt Common shares Retained earnings Carrying Amount Dividend income Net income Common shares Retained earnings Fair Value $ 60,300 S 68,600 273,000 279,008 40,600 160,600 183,000 178,000 42,600 As at December 31, Year 3, the equipment and patent had an estimated useful life of six and eight years, respectively. The long-term debt is due on January 1, Year 9. There was a goodwill impairment loss of $3,000 in Year 5. There were no other impairment losses. Mueller uses the cost method to account for its investment in Wilson. The book values of selected accounts for the year ended December 31, Year 7 were as follows: ? 7 Mueller $ 12,300 Wilson 62,600 $ 26,600 101,500 178,000 256,000 116,000 4 Required: (a) Prepare a schedule of changes to the acquisition differential for the four year period ending December 31, Year 7. (Leave no cells blank be certain to enter "0" wherever required. Omit $ sign in your response. Negative/Deductible amounts should be indicated. by a minus sign.) Activ.
Required: (a) Prepare a schedule of changes to the acquisition differential for the four year period ending December 31, Year 7. (Leave no cells blank be certain to enter "0" wherever required. Omit S sign in your response. Negative/Deductible amounts should be indicated by a minus sign.) Inventory Equipment (6 years) Patents (8 years) Long-term debt (5 years) Goodwill Balance Dec. 1 Year 3 $ 118400 0 0 95000 3000 Changes Consolidated net income attributable to the parent Consolidated retained earnings Non-controlling interest Year 4, 546 $ Year 7 Balance Dec. 31 Year 7 $ (b) Calculate consolidated net income attributable to the parent, ending retained earnings and non-controlling interest at December 31, Year 7. (Omit $ sign in your response.) 555 S
Transcribed Image Text:Required: (a) Prepare a schedule of changes to the acquisition differential for the four year period ending December 31, Year 7. (Leave no cells blank be certain to enter "0" wherever required. Omit S sign in your response. Negative/Deductible amounts should be indicated by a minus sign.) Inventory Equipment (6 years) Patents (8 years) Long-term debt (5 years) Goodwill Balance Dec. 1 Year 3 $ 118400 0 0 95000 3000 Changes Consolidated net income attributable to the parent Consolidated retained earnings Non-controlling interest Year 4, 546 $ Year 7 Balance Dec. 31 Year 7 $ (b) Calculate consolidated net income attributable to the parent, ending retained earnings and non-controlling interest at December 31, Year 7. (Omit $ sign in your response.) 555 S
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