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REQUIRED bo 1. Prepare a schedule to assign the difference between the fair value of the investment in Son and the book value of the interest to identifiable and unidentifiable net assets. 2. Prepare a consolidated balance sheet for Pop Corporation and Subsidiary at January 1, 2016.

REQUIRED bo 1. Prepare a schedule to assign the difference between the fair value of the investment in Son and the book value of the interest to identifiable and unidentifiable net assets. 2. Prepare a consolidated balance sheet for Pop Corporation and Subsidiary at January 1, 2016.

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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**Balance Sheet Information for Pop and Son** **Assets** *Pop Book Value* - Cash: $70 - Receivables—net: $160 - Inventories: $140 - Land: $200 - Buildings—net: $220 - Equipment—net: $160 - Investment in Son: $350 >Total assets: $1,300 *Son Book Value* - Cash: $40 - Receivables—net: $60 - Inventories: $100 - Land: $140 - Buildings—net: $80 - Equipment—net: — >Total assets: $480 *Son Fair Value* - Cash: $40 - Receivables—net: $60 - Inventories: $120 - Land: $180 - Buildings—net: 60 - Equipment—net: — >Total assets: $560 **Liabilities and Stockholders’ Equity** *Pop Book Value* - Accounts payable: $180 - Other liabilities: $20 - Capital stock, $20 par: $1,000 - Retained earnings: $100 >Total equities: $1,300 *Son Book Value* - Accounts payable: $160 - Other liabilities: 100 - Capital stock, $20 par: 200 - Retained earnings: 20 >Total equities: $480 --- **REQUIRED** 1. Prepare a schedule to assign the difference between the fair value of the investment in Son and the book value of the interest to identifiable and unidentifiable net assets. 2. Prepare a consolidated balance sheet for Pop Corporation and Subsidiary at January 1, 2016.
Transcribed Image Text:**Balance Sheet Information for Pop and Son** **Assets** *Pop Book Value* - Cash: $70 - Receivables—net: $160 - Inventories: $140 - Land: $200 - Buildings—net: $220 - Equipment—net: $160 - Investment in Son: $350 >Total assets: $1,300 *Son Book Value* - Cash: $40 - Receivables—net: $60 - Inventories: $100 - Land: $140 - Buildings—net: $80 - Equipment—net: — >Total assets: $480 *Son Fair Value* - Cash: $40 - Receivables—net: $60 - Inventories: $120 - Land: $180 - Buildings—net: 60 - Equipment—net: — >Total assets: $560 **Liabilities and Stockholders’ Equity** *Pop Book Value* - Accounts payable: $180 - Other liabilities: $20 - Capital stock, $20 par: $1,000 - Retained earnings: $100 >Total equities: $1,300 *Son Book Value* - Accounts payable: $160 - Other liabilities: 100 - Capital stock, $20 par: 200 - Retained earnings: 20 >Total equities: $480 --- **REQUIRED** 1. Prepare a schedule to assign the difference between the fair value of the investment in Son and the book value of the interest to identifiable and unidentifiable net assets. 2. Prepare a consolidated balance sheet for Pop Corporation and Subsidiary at January 1, 2016.
**P3-2 Allocation Schedule for Fair Value/Book Value Differential and Consolidated Balance Sheet at Acquisition** Pop Corporation acquired 70 percent of the outstanding common stock of Son Corporation on January 1, 2016, for $350,000 cash. Immediately after this acquisition, the balance sheet information for the two companies was as follows (in thousands):
Transcribed Image Text:**P3-2 Allocation Schedule for Fair Value/Book Value Differential and Consolidated Balance Sheet at Acquisition** Pop Corporation acquired 70 percent of the outstanding common stock of Son Corporation on January 1, 2016, for $350,000 cash. Immediately after this acquisition, the balance sheet information for the two companies was as follows (in thousands):
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