Chapter 3, Problem 46P

a.

To determine

Prepare the journal entry to record the acquisition of the subsidiary.

b.

To determine

Exhibit computations to yield the parent company's reported Equity Income in its income

statement.

c.

To determine

Exhibit computations to yield the parent company's reported Equity Investment.

d.

To determine

Demonstrate the calculation to determine the amount assigned on 1 January 2016 for the Goodwill asset.

e.

To determine

Mention the amount at which each of the following will report on the consolidated financial statement for the year ended 2016.

• Consolidated net income
• Accounts receivable
• Equity investment
• Property, plant and equipment (PPE), net
• Goodwill
• Common stock
• APIC
• Retained Earnings

f.

To determine

Classify the name of the intangible assets that will be reported on the consolidated balance sheet with their amount and also givethe reason why they were not reportedprior in pre-acquisition financial statements of the parent or the subsidiary