On January 1, 2005, Finch Corporation purchased 75% of the
common stock of Grass Co. Separate...
On January 1, 2005, Finch Corporation purchased 75% of the
common stock of Grass Co. Separate balance sheet data for the
companies at the combination date are given
below:
Finch
Grass
Cash
$
34,000
$
206,000
Accounts
Receivable
144,000
26,000
Inventory
132,000
38,000
Land
68,000
32,000
Plant
assets
700,000
300,000
Accum. Depreciation
(
240,000
)
(
60,000)
Investment in
Lapp
392,000
Total assets ...
On January 1, 2014, Punch Corporation purchased 80% of the
common stock of Soopy Co. Separate...
On January 1, 2014, Punch Corporation purchased 80% of the
common stock of Soopy Co. Separate balance sheet data for the
companies at the acquisition date (after the acquisition) are given
below:
Punch Soopy
Cash
$34,000 $206,000
Accounts Receivable
144,000 26,000
Inventory
132,000 38,000
Land
68,000 32,000
Plant assets
700,000 300,000
Accum.
Depreciation (240,000) (60,000)
Investment in
Soopy 392,000
Total
assets $ 1,230,000 $
542,000
Accounts
payable $206,000 $142,000
Capital stock
800,000 300,000
Retained earnings
224,000 100,000
Total liabilities & equities
$1,230,000 $542,000
At the date of the acquisition, the book values of Soopy's net
assets were...
On January 1, 2013, Pamela Company purchased 75% of the common
stock of Snicker Company. Separate...
On January 1, 2013, Pamela Company purchased 75% of the common
stock of Snicker Company. Separate balance sheet data for the
companies at the combination date are given below:
Snicker
Co.
Snicker Co.
Pamela
Co. Book
Values Fair
Values
Cash
$
18,000
$155,000
$155,000
Accounts receivable
108,000
20,000
20,000
Inventory
99,000
26,000
45,000
Land
60,000
24,000
45,000
Plant assets
525,000
225,000
300,000
Acc.
depreciation
(180,000)
(45,000)
Investment in Snicker
Co. 330,000
Total
assets $960,000 $405,000 $565,000
...
PAM Co. acquired all of the common stock of Sista Co. on January
1, 2017. As...
PAM Co. acquired all of the common stock of Sista Co. on January
1, 2017. As of that date, Sista had the following trial
balance:
Debit
Credit
Accounts payable
$
60,000
Accounts receivable
$
50,000
Additional paid-in capital
60,000
Buildings (net) (20-year life)
140,000
Cash and short-term investments
70,000
Common stock
300,000
Equipment (net) (8-year life)
240,000
Intangible assets (indefinite life)
110,000
Land
90,000
Long-term liabilities (mature 12/31/19)
180,000
Retained earnings, 1/1/17
120,000
Supplies
20,000
Totals
$
720,000
$
720,000...
On January 1, 20X1, Parent Company purchased 80% of the common
stock of Subsidiary Company for...
On January 1, 20X1, Parent Company purchased 80% of the common
stock of Subsidiary Company for $316,000. On this date, Subsidiary
had common stock, other paid-in capital, and retained earnings of
$40,000, $120,000, and $190,000, respectively. Net income and
dividends for 2 years for Subsidiary Company were as follows:
20X1 20X2
Net income $50,000 $90,000
Dividends 10,000 20,000
On January 1, 20X1, the only tangible assets of Subsidiary that
were undervalued were inventory and building. Inventory, for which
FIFO is...
34) On January 1, 2017, Prince Company purchased an 80%
interest in the common stock of...
34) On January 1, 2017, Prince Company purchased an 80%
interest in the common stock of Sivet Company for $1,040,000, which
was $60,000 greater than the book value of equity acquired. The
difference between implied and book value relates to the
subsidiary’s land.
The following information is from the consolidated retained
earnings section of the consolidated statements workpaper for the
year ended December 31, 2017:
SIVET CONSOLIDATED
COMPANY BALANCES
1/01/17 retained earnings $300,000 $1,400,000
Net income 220,000 680,000
Dividends declared...
On January 1, 2016, Monica Company acquired 70 percent of Young
Company’s outstanding common stock for...
On January 1, 2016, Monica Company acquired 70 percent of Young
Company’s outstanding common stock for $665,000. The fair value of
the noncontrolling interest at the acquisition date was
$285,000.
Young reported stockholders’ equity accounts on that date as
follows:
Common stock—$10 par value
$
300,000
Additional paid-in capital
90,000
Retained earnings
410,000
In establishing the acquisition value, Monica appraised Young's
assets and ascertained that the accounting records undervalued a
building (with a five-year remaining life) by $50,000. Any
remaining...
Consolidated Balance Sheet, Stock Purchase On January 2, 2014,
Prunce Company acquired 90% of the outstanding...
Consolidated Balance Sheet, Stock Purchase On January 2, 2014,
Prunce Company acquired 90% of the outstanding common stock of Sun
Company for $192,000 cash. Just before the acquisition, the balance
sheets of the two companies were as follows: Prunce Sun Cash
$260,000 $ 64,000 Accounts receivable (net) 142,000 23,000
Inventory 117,000 54,000 Plant and equipment (net) 386,000 98,000
Land 63,000 32,000 Total asset $968,000 $271,000 Accounts payable
$104,000 $ 47,000 Mortgage payable 72,000 39,000 Common stock, $2
par value 400,000...
Parent Corporation acquired 80% of the common stock of Subs,
Inc. on January 1, 2017 for...
Parent Corporation acquired 80% of the common stock of Subs,
Inc. on January 1, 2017 for $310,000. The total book value of Subs,
Inc. stock on the date of combinations was $300,000. On the date of
combination, all assets and liabilities of Subs, Inc. had fair
values equal exceeded their book values, except that the fair value
of inventory, land, and building and equipment each exceeded their
book value by $5,000, $10,000, and $60,000 respectively. Any
remaining differential is to...
Hamlen Corporation acquired 100 percent of Pink's Company's
common stock on January 1, 2015. Balance sheet...
Hamlen Corporation acquired 100 percent of Pink's Company's
common stock on January 1, 2015. Balance sheet data for the two
companies immediately following the acquisition follow:
.....................................................Hamlen..................
Pink's
Cash.............................................$ 30,000
..............$25,000
Accounts Receivable........................... 80,000
................40,000
Inventory........................................
150,000............... 55,000
Land.............................................. 65,000
................40,000
Buildings and Equipment......................
260,000............. 160,000
Less: Accumulated Depreciation............
(120,000)............. (50,000)
Investment in Pong Company Stock.......... 150,000
Total Assets...................................... $615,000
........$270,000
Accounts Payable...............................$
45,000.......... $ 33,000
Taxes Payable....................................
20,000............... 8,000
Bonds Payable ...................................
200,000........... 100,000
Common Stock..................................... 50,000
............20,000
Retained...