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I keep getting the same two questions wrong. Slim Corporation’s balance sheet at January 1, 20X7,...

I keep getting the same two questions wrong. Slim Corporation’s balance sheet at January 1, 20X7, reflected the following balances: Assets Liabilities & Stockholders’ Equity Cash & Receivables $ 89,000 Accounts Payable $ 33,000 Inventory 126,000 Income Taxes Payable 49,000 Land 86,000 Bonds Payable 274,000 Buildings & Equipment (net) 485,000 Common Stock 240,000 Retained Earnings 190,000 Total Assets $ 786,000 Total Liabilities & Stockholders’ Equity $ 786,000 Ford Corporation entered into an active acquisition program and acquired 80 percent of Slim’s common stock on January 2, 20X7, for $450,000. The fair value of the noncontrolling interest at that date was determined to be $112,500. A careful review of the fair value of Slim’s assets and liabilities indicated the following: Book Value Fair Value Inventory $ 126,000 $ 146,000 Land 86,000 76,000 Buildings & Equipment (net) 485,000 562,000 Goodwill is assigned proportionately to Ford and the noncontrolling shareholders. Required: Compute the appropriate amount related to Slim to be included in the consolidated balance sheet immediately following the acquisition for each of the following items:

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Answer #1

1.INVENTORY Will be reported at fair value=$146000

2.Land will be reported at fair value=$76000

3.buildings and equipment - also reported at fair value-$562000

4.goodwill=$45500

Fair value of acquisition(450000+112500) 562500
Book value 430000
(240000+190000)
Fair value in excess of book value 132500
Allocated to specific accounts
Inventory 20000
(146000-126000)
Land -10000
(76000-86000)
Buildings and equipment 77000
(562000-485000)
goodwill 45500

5.Investment in slim corporation-none will be reported the balance in investment account is eliminated

6.Non controlling interest at fair value=$112500

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