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 Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter14: Intercorporate Investments In Common Stock
Section: Chapter Questions
Problem 28P
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Son
R 3
Fair Value
Book Value
Pop Book Value
$ 40
$40
$ 70
Assets
Cash
Receivables-net
aboog
60
60
160
60
100
140
Inventories
100
120
200
Land
140
180
220
Buildings–net
Equipment-net
Investment in Son
80
60
160
350
$1,300
Pol
$480
$ 560 0
Total assets
Liabilities and Stockholders' Equity
Accounts payable
g09 vd boni $ 180
$160
$160
Other liabilities
00
0,00 20
100
80
Capital stock, $20 par
Retained earnings
Total equities
1,000m
200
to 2803
100
20
$1,300
$480
REQUIRED
19:03
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:Son R 3 Fair Value Book Value Pop Book Value $ 40 $40 $ 70 Assets Cash Receivables-net aboog 60 60 160 60 100 140 Inventories 100 120 200 Land 140 180 220 Buildings–net Equipment-net Investment in Son 80 60 160 350 $1,300 Pol $480 $ 560 0 Total assets Liabilities and Stockholders' Equity Accounts payable g09 vd boni $ 180 $160 $160 Other liabilities 00 0,00 20 100 80 Capital stock, $20 par Retained earnings Total equities 1,000m 200 to 2803 100 20 $1,300 $480 REQUIRED 19:03 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.
iwbooD
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):
000,42
oitiups loT
Transcribed Image Text:iwbooD 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): 000,42 oitiups loT
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