KThe balance sheets of Prima Ltd. and Donna Corp. on December 31, Year 5, are shown below:McGrawHillCashAccounts receivableInventoryPlantPatentsCurrent liabilitiesLong-term debtCommon sharesRetained earningsCashAccounts receivableInventoryPlantPrima$ 374,20084,200100,400514,800104,400$1,178,000TrademarksPatentsCurrent liabilitiesLong-term debt$ 164,800262,000356,800394,400$1,178,000The fair values of the identifiable net assets of Donna Corp. on this date are as follows:$ 10,65022,80085,000197,00030,00060,00036,40078,000Donna$ 10,65026,80069,600166,00026,800$ 299,850$36,40068,000102,00093,450$ 299,850In addition to the assets identified above, Donna owned a significant number of Internet domain names, which are uniquealphanumeric names used to identify a particular numeric Internet address. These domain names can be sold separately and areestimated to be worth a total of $58,000.On January 1, Year 6, Prima Ltd. paid $315,000 in cash to acquire 80% of the common shares of Donna Corp.Required:(a) Prepare the consolidated balance sheet on January 1, Year 6, under the fair value enterprise method.Prima LtdConsolidated Balance SheetJanuary 1, Year 6< Prev2 of 4Next >

Consolidation refers to the process of combining the financial statements of several subsidiary…

The balance sheets of Prima Ltd. and Donna Corp. on December 31, Year 5, are shown below: Donna $ 10,650 26,800 69,600 166,000 26,800 $ 299,850 Cash Accounts receivable Inventory Plant Patents Current liabilities Long-term debt Common shares Retained earnings Cash Accounts receivable Inventory Plant Prima $ 374,200 84,200 100,400 514,800 104,400 $1,178,000 Trademarks Patents Current liabilities Long-term debt $ 164,800 262,000 356,800 394,400 $1,178,000 The fair values of the identifiable net assets of Donna Corp. on this date are as follows: $ 10,650 22,800 85,000 $36,400 68,000 102,000 93,450 $ 299,850 197,000 30,000 60,000 36,400 78,000 In addition to the assets identified above, Donna owned a significant number of Internet domain names, which are unique alphanumeric names used to identify a particular numeric Internet address. These domain names can be sold separately and are estimated to be worth a total of $58,000. On January 1, Year 6, Prima Ltd. paid $315,000 in cash to acquire 80% of the common shares of Donna Corp. Required: (a) Prepare the consolidated balance sheet on January 1, Year 6, under the fair value enterprise method.

The balance sheets of Prima Ltd. and Donna Corp. on December 31, Year 5, are shown below: Donna $ 10,650 26,800 69,600 166,000 26,800 $ 299,850 Cash Accounts receivable Inventory Plant Patents Current liabilities Long-term debt Common shares Retained earnings Cash Accounts receivable Inventory Plant Prima $ 374,200 84,200 100,400 514,800 104,400 $1,178,000 Trademarks Patents Current liabilities Long-term debt $ 164,800 262,000 356,800 394,400 $1,178,000 The fair values of the identifiable net assets of Donna Corp. on this date are as follows: $ 10,650 22,800 85,000 $36,400 68,000 102,000 93,450 $ 299,850 197,000 30,000 60,000 36,400 78,000 In addition to the assets identified above, Donna owned a significant number of Internet domain names, which are unique alphanumeric names used to identify a particular numeric Internet address. These domain names can be sold separately and are estimated to be worth a total of $58,000. On January 1, Year 6, Prima Ltd. paid $315,000 in cash to acquire 80% of the common shares of Donna Corp. Required: (a) Prepare the consolidated balance sheet on January 1, Year 6, under the fair value enterprise method.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 30BEB: Klynveld Companys balance sheet shows total liabilities of 94,000,000, total stockholders equity of...

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