Chapter 4, Problem 24P

a.

To determine

Find the amount which should be recognized by Company P as the total value of the acquisition in its January 1 consolidated balance sheet.

b.

To determine

Identify the valuation principle which should be used by Company P to report each of Company S’s identifiable assets and liabilities in its January 1 consolidated balance sheet.

c.

To determine

Explain the manner in which Company S’s identifiable assets and liabilities be valued in Company P’s consolidated financial statements for years subsequent to acquisition.

d.

To determine

Find the amount of goodwill resulted from Company P’s acquisition of Company S.

e.

To determine

Determine the consolidated net income for the year and the amounts which are allocated to the controlling and non-controlling interest.

f.

To determine

Find the non-controlling interest amount reported in the December 31 consolidated balance sheet.

g.

To determine

Explain the manner in which the reported amounts for Company S’s net assets change on Company P’s acquisition-date consolidated balance sheet.