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.

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Chapter8: Liabilities And Stockholders' Equity
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K
The balance sheets of Prima Ltd. and Donna Corp. on December 31, Year 5, are shown below:
Mc
Graw
Hill
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
197,000
30,000
60,000
36,400
78,000
Donna
$ 10,650
26,800
69,600
166,000
26,800
$ 299,850
$36,400
68,000
102,000
93,450
$ 299,850
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.
Prima Ltd
Consolidated Balance Sheet
January 1, Year 6
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Transcribed Image Text:K The balance sheets of Prima Ltd. and Donna Corp. on December 31, Year 5, are shown below: Mc Graw Hill 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 85,000 197,000 30,000 60,000 36,400 78,000 Donna $ 10,650 26,800 69,600 166,000 26,800 $ 299,850 $36,400 68,000 102,000 93,450 $ 299,850 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. Prima Ltd Consolidated Balance Sheet January 1, Year 6 < Prev 2 of 4 Next >
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