Question

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     $                      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 combination, the book values of Grass’s net assets were equal to the fair value except for Grass’s inventory, which had a fair value of $60,000.

Determine below what the consolidated balance would be for each of the requested accounts.

1.                     What amount of Goodwill will be reported?

                        a.         $10,500.

                        b.         $20,000.

                        c.         $42,000.

                        d.         $75,500.

2.                     What is the reported amount for the non-controlling interest?

3.                     What is the amount of total assets?

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
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, 2016, Poole Company purchased 75% of the common stock of Swimmer Company. Separate...
On January 1, 2016, Poole Company purchased 75% of the common stock of Swimmer Company. Separate balance sheet data for the companies at the combination date are given below: Swimmer Co Swimmer Co. Poole Co. Book Values Fair Values Cash $ 24,000 $206,000 $206,000 Accounts receivable 144,000 26,000 26,000 Inventory 132,000 38,000 60,000 Land 78,000 32,000 60,000 Plant assets 700,000 300,000 350,000 Acc. depreciation (240,000) (60,000) Investment in Swimmer Co. 440,000 Total assets $1,278,000 $542,000 $702,000 Accounts payable $206,000 $142,000...
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            ...
2- Dubai Corporation acquired 100 percent of Sharjah Company's common stock on January 1, 2019. Balance...
2- Dubai Corporation acquired 100 percent of Sharjah Company's common stock on January 1, 2019. Balance sheet data for the two companies immediately following the acquisition follows: Item Dubai Corporation Sharjah Company 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 Spin Company Stock 150,000 Total Assets $ 615,000 $ 270,000 Accounts Payable $45,000 $33,000 Taxes Payable 20,000 8,000 Bonds...
Hamlen Corporation acquired 100 percent of Pink's Company's common stock on January 1, 2015. Balance sheet...
Hamlen Corporation acquired 100 percent of Pink's Company's common stock on January 1, 2015. Balance sheet data for the two companies immediately following the acquisition follow: .....................................................Hamlen.................. Pink's Cash.............................................$ 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...
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...
2- Dubai Corporation acquired 100 percent of Sharjah Company's common stock on January 1, 2019. Balance...
2- Dubai Corporation acquired 100 percent of Sharjah Company's common stock on January 1, 2019. Balance sheet data for the two companies immediately following the acquisition follows: Item Dubai Corporation Sharjah Company 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 Spin Company Stock 150,000 Total Assets $ 615,000 $ 270,000 Accounts Payable $45,000 $33,000 Taxes Payable 20,000 8,000 Bonds...
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...
On January 1, 20X8, Ramon Corporation acquired 75 percent of Tester Company's voting common stock for...
On January 1, 20X8, Ramon Corporation acquired 75 percent of Tester Company's voting common stock for $300,000. At the time of the combination, Tester reported common stock outstanding of $200,000 and retained earnings of $150,000, and the fair value of the noncontrolling interest was $100,000. The book value of Tester's net assets approximated market value except for patents that had a market value of $30,000 more than their book value. The patents had a remaining economic life of five years...
Princeton Company acquired 75 percent of the common stock of Sheffield Corporation on December 31, 2011....
Princeton Company acquired 75 percent of the common stock of Sheffield Corporation on December 31, 2011. On the date of acquisition, Princeton held land with a book value of $150,000 and a fair value of $300,000; Sheffield held land with a book value of $100,000 and fair value of $500,000. What amount would land be reported in the consolidated balance sheet prepared immediately after the combination? a.$650,000 b.$500,000 c.$550,000 d.$375,000 On January 1, 2011, Primer Corporation acquired 80 percent of...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT