Question

Below are the pre-combination condensed balance sheets of Princecraft and Sylvan Companies just prior to Princecraft's...

Below are the pre-combination condensed balance sheets of Princecraft and Sylvan Companies just prior to Princecraft's acquisition of 90 percent of the voting shares of Sylvan for $43 million in chas. The book value of Sylvan Company's net assets approximate fair value. The noncontrolling interest in Sylvan has a fair value of $4,250,000.

Princecraft Company Sylvan Company
Cash $60,000,000 $2,000,000
Other current assts $20,000,000 $8,000,000
Property and equipment, net $70,000,000 $15,000,000
Total assets $150,000,000 $25,000,000
Total liabilties $30,000,000 $8,000,000
Common stock $15,000,000 $5,000,000
Additional paid-in capital $45,000,000 $10,000,000
Retained earnings $60,000,000 $2,000,000
Total liabilities and equity $150,000,000 $25,000,000

Required:

a. Calculate total goodwill and its allocation to the controlling and noncontrolling interests.

b. Prepare the consolidation working paper at the date of acquisition.

c. Prepare the consolidated balance sheet at the date of acquisition, in good form.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
You are responsible for preparing the consolidated balance sheet of Princecraft and its new subsidiary, Sylvan,...
You are responsible for preparing the consolidated balance sheet of Princecraft and its new subsidiary, Sylvan, at the date of acquisition. The consolidation working paper as of the date of acquisition appears below. Sylvan’s assets and liabilities are reported at fair value, except that its plant and equipment is overvalued by $15,000,000, and it has previously unreported developed technology, which meets the requirements for capitalization per ASC Topic 805, valued at $20,000,000. Required a.         Fill in the consolidation working paper....
Petra Corporation purchased all of the outstanding shares of Stuckey Corporation for $24,000,000. Stuckey’s balance sheet...
Petra Corporation purchased all of the outstanding shares of Stuckey Corporation for $24,000,000. Stuckey’s balance sheet at the date of acquisition is as follows: Book Value Fair Value Dr (Cr) Current assets $    8,000,000 $    6,500,000 Plant assets      90,000,000      60,000,000 Current liabilities    (4,000,000)     (4,000,000) Noncurrent liabilities (69,000,000) (67,000,000) Capital stock (2,000,000) Retained earnings (23,000,000) Stuckey has previously unreported intangibles, meeting the criteria for capitalization, with a fair value of 35,000,000. Eliminating entry (R) on the consolidation...
Parkland buys all of Sander Company’s assets and liabilities. Sander’ balance sheet at the date of...
Parkland buys all of Sander Company’s assets and liabilities. Sander’ balance sheet at the date of acquisition, including fair value information on its reported assets and liabilities, is as follows: Book Value Dr (Cr) Fair Value Dr (Cr) Assets Cash, receivables $   1,000,000 $     950,000 Inventories 5,000,000 4,000,000 Property and equipment 60,000,000 45,000,000 Total assets $ 66,000,000 Liabilities & Equity Accounts and notes payable $ 30,000,000 29,000,000 Common stock 500,000 Additional paid-in capital 15,000,000 Retained earnings 20,500,000 Total liabilities and...
[The following information applies to the questions displayed below.] The separate condensed balance sheets of Patrick...
[The following information applies to the questions displayed below.] The separate condensed balance sheets of Patrick Corporation and its wholly owned subsidiary, Sean Corporation, are as follows: BALANCE SHEETS December 31, 2017 Patrick Sean Cash $ 72,000 $ 70,000 Accounts receivable (net) 140,000 32,000 Inventories 100,000 62,000 Plant and equipment (net) 634,000 262,000 Investment in Sean 464,000 - Total assets $ 1,410,000 $ 426,000 Accounts payable 144,000 96,000 Long-term debt 112,000 34,000 Common stock ($10 par) 328,000 68,000 Additional paid-in...
Required information [The following information applies to the questions displayed below.] The separate condensed balance sheets...
Required information [The following information applies to the questions displayed below.] The separate condensed balance sheets of Patrick Corporation and its wholly owned subsidiary, Sean Corporation, are as follows: BALANCE SHEETS December 31, 2017 Patrick Sean Cash $ 80,000 $ 42,000 Accounts receivable (net) 140,000 28,000 Inventories 86,000 60,000 Plant and equipment (net) 640,000 278,000 Investment in Sean 454,000 - Total assets $ 1,400,000 $ 408,000 Accounts payable 172,000 86,000 Long-term debt 100,000 26,000 Common stock ($10 par) 306,000 70,000...
The comparative condensed balance sheets of Gurley Corporation are presented below. GURLEY CORPORATION Comparative Condensed Balance...
The comparative condensed balance sheets of Gurley Corporation are presented below. GURLEY CORPORATION Comparative Condensed Balance Sheets December 31 2017 2016 Assets     Current assets $ 74,500 $ 81,600     Property, plant, and equipment (net) 97,500 91,000     Intangibles 28,200 39,000       Total assets $200,200 $211,600 Liabilities and stockholders’ equity     Current liabilities $ 41,800 $ 47,400     Long-term liabilities 141,800 151,200     Stockholders’ equity 16,600 13,000       Total liabilities and stockholders’ equity $200,200 $211,600 (a) Prepare a horizontal analysis of the balance sheet data for Gurley Corporation...
On January 1, Park Corporation and Strand Corporation had condensed balance sheets as follows:    Park...
On January 1, Park Corporation and Strand Corporation had condensed balance sheets as follows:    Park Strand   Current assets $ 94,750      $ 28,100      Noncurrent assets 99,500      41,900             Total assets $ 194,250     $ 70,000         Current liabilities $ 39,000      $ 20,000      Long-term debt 51,250      —      Stockholders' equity 104,000      50,000             Total liabilities and equities $ 194,250     $ 70,000          On January 2, Park borrowed $64,000 and...
On January 1, Park Corporation and Strand Corporation had condensed balance sheets as follows: Park Strand...
On January 1, Park Corporation and Strand Corporation had condensed balance sheets as follows: Park Strand Current assets $ 116,750 $ 25,400 Noncurrent assets 92,000 43,600 Total assets $ 208,750 $ 69,000 Current liabilities $ 38,000 $ 19,000 Long-term debt 73,750 0 Stockholders' equity 97,000 50,000 Total liabilities and equities $ 208,750 $ 69,000 On January 2, Park borrowed $59,200 and used the proceeds to obtain 80 percent of the outstanding common shares of Strand. The acquisition price was considered...
Consolidating Eliminating Entries, Date of Acquisition: U.S. GAAP and IFRS Plummer Corporation acquired 90 percent of...
Consolidating Eliminating Entries, Date of Acquisition: U.S. GAAP and IFRS Plummer Corporation acquired 90 percent of Softek Technologies' voting stock by issuing 2,000,000 shares of $2 par common stock with a fair value of $25,000,000. In addition, Plummer paid $500,000 in cash to the consultants and accountants who advised in the acquisition. Softek's stockholders' equity at the date of acquisition is as follows: Common stock $200,000 Additional paid-in capital 8,000,000 Retained earnings 5,000,000 Accumulated other comprehensive income (800,000) Treasury stock...
Income Statement Balance Sheet Sales $20,000,000 Assets: Cost of Goods Sold 8,000,000 Cash $5,000,000 12,000,000 Marketable...
Income Statement Balance Sheet Sales $20,000,000 Assets: Cost of Goods Sold 8,000,000 Cash $5,000,000 12,000,000 Marketable Securities 12,500,000 Selling and Administrative 1,600,000 Accounts Receivable, net 2,500,000 Depreciation 3,000,000 Inventory 30,000,000 EBIT 7,400,000 Prepaid Expenses 5,000,000 Interest 2,000,000 Plant & Equipment 30,000,000 5,400,000 Taxes (40%) 2,160,000 Total Assets 85,000,000 3,240,000 Common Stock Div. 600,000 Liabilities and Equity: $2,640,000 Accounts Payable $20,000,000 Notes Payable 5,000,000 Shares outstanding of common stock = 1,000,000 Accrued Expenses 5,000,000 Market price of common stock = $18...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT