Chapter 4, Problem 34P

a.

To determine

Explain the way in which the accountant determines that the parent has applied the initial value method.

b.

To determine

Find the annual excess amortization initially recognized in connection with this acquisition.

c.

To determine

Find the investment income which the parent would have recorded in 2018 if the parent had applied the equity method.

d.

To determine

Find the amount which the parent should report as retained earnings in its January 1, 2018, consolidated balance sheet.

e.

To determine

Find the consolidated net income for 2018 and what amounts are attributable to the controlling and non-controlling interests.

f.

To determine

Find the balance which is included for the subsidiary’s Buildings account.

g.

To determine

Find the consolidated Buildings reported balance as of December 31, 2018.