
1.
Find the amount which Starbucks estimate for the October 31, 2014, acquisition-date fair value of Starbucks Japan.
2.
Explain the way in which Starbucks allocate the acquisition-date fair value of Starbucks Japan among the assets acquired and liabilities assumed.
3.
Identify how Starbucks explain the three different valuation bases for the following items
- Amount paid to Sazaby for 39.5 percent share purchase
- The fair value of Starbucks’ pre-existing 39.5 equity interest
- The fair value of the 21 percent non-controlling interest
4.
Explain how Starbucks account for its 39.5 percent ownership interest in Starbucks Japan prior to the acquisition of its controlling interest.
5.
Explain how Starbucks account for the change in fair value of its original 39.5 percent ownership interest upon acquisition of its controlling interest on October 31, 2014.
6.
Explain how Starbucks account for the difference between the amount paid and the underlying carrying amount of Starbucks Japan upon acquisition of the 21 percent non-controlling interest.

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Chapter 4 Solutions
Fundamentals of Advanced Accounting
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