Loose Leaf for Fundamentals of Advanced Accounting
Loose Leaf for Fundamentals of Advanced Accounting
7th Edition
ISBN: 9781260151879
Author: Hoyle, Joe Ben; Schaefer, Thomas; Doupnik, Timothy
Publisher: McGraw-Hill Education
Question
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Chapter 4, Problem 2DYS

1.

To determine

Find the amount which Starbucks estimate for the October 31, 2014, acquisition-date fair value of Starbucks Japan.

2.

To determine

Explain the way in which Starbucks allocate the acquisition-date fair value of Starbucks Japan among the assets acquired and liabilities assumed.

3.

To determine

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.

To determine

Explain how Starbucks account for its 39.5 percent ownership interest in Starbucks Japan prior to the acquisition of its controlling interest.

5.

To determine

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.

To determine

 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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