Son Pop Book Value Book Value Fair Value Assets Cash S 70 160 140 $ 40 $ 40 Receivables-net Inventories 60 60 60 100 Land Buildings-net Equipment-net Investment in Son 200 220 100 140 120 180 160 80 60 350 S1.300 $480 $ 560 Total assets Liabilities and Stockholders' Equity Accounts payable Other liabilities Capital stock, $20 par Retained earnings Total equities S 180 20 $160 100 $160 80 1,000 100 200 20 S1,300 $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.
Son Pop Book Value Book Value Fair Value Assets Cash S 70 160 140 $ 40 $ 40 Receivables-net Inventories 60 60 60 100 Land Buildings-net Equipment-net Investment in Son 200 220 100 140 120 180 160 80 60 350 S1.300 $480 $ 560 Total assets Liabilities and Stockholders' Equity Accounts payable Other liabilities Capital stock, $20 par Retained earnings Total equities S 180 20 $160 100 $160 80 1,000 100 200 20 S1,300 $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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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
companies was as follows (in thousands) :
Transcribed Image Text:Son
Pop Book Value
Book Value
Fair Value
Assets
Cash
S 70
160
140
$ 40
$ 40
Receivables-net
Inventories
60
60
60
100
Land
Buildings-net
Equipment-net
Investment in Son
200
220
100
140
120
180
160
80
60
350
S1.300
$480
$ 560
Total assets
Liabilities and Stockholders' Equity
Accounts payable
Other liabilities
Capital stock, $20 par
Retained earnings
Total equities
S 180
20
$160
100
$160
80
1,000
100
200
20
S1,300
$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.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 3 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education