Question

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:

Homework Answers

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

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
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...
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...
Jersey Corporation acquired 100 percent of Lime Company on January 1, 20X7, for $201,000. The trial...
Jersey Corporation acquired 100 percent of Lime Company on January 1, 20X7, for $201,000. The trial balances for the two companies on December 31, 20X7, included the following amounts: Jersey Corporation Lime Company   Item Debit Credit Debit Credit   Cash $ 82,000 $ 32,000   Accounts Receivable 68,000 73,000   Inventory 174,000 119,000   Land 80,000 27,000   Buildings and Equipment 491,000 153,000   Investment in Lime Co. Stock 254,000   Cost of Goods Sold 491,000 252,000   Depreciation Expense 22,000 12,000   Other Expenses 69,000 69,000   Dividends Declared...
Marino Company had the following balance sheet on January 1, 2016: Marino Company Balance Sheet January...
Marino Company had the following balance sheet on January 1, 2016: Marino Company Balance Sheet January 1, 2016 1 Cash $20,000.00 Accounts payable $20,000.00 2 Inventory 30,000.00 Notes payable 100,000.00 3 Property, plant, and equipment 200,000.00 4 Patent 20,000.00 Shareholders’ equity 150,000.00 5 $270,000.00 $270,000.00 On January 1, 2016, Paul Company purchased Marino by acquiring all its outstanding shares for $300,000 cash. On that date, the fair value of the inventory was $20,000, and the fair value of the equipment...
1. McGuire Company acquired 90 percent of Hogan Company on January 1, 2019, for $234,000 cash....
1. McGuire Company acquired 90 percent of Hogan Company on January 1, 2019, for $234,000 cash. This amount is reflective of Hogan’s total acquisition-date fair value. Hogan's stockholders' equity consisted of common stock of $160,000 and retained earnings of $80,000. An analysis of Hogan's net assets revealed the following: Book Value Fair Value Buildings (10-year life) $ 10,000 $ 8,000 Equipment (4-year life) 14,000 18,000 Land 5,000 12,000 Any excess consideration transferred over fair value is attributable to an unamortized...
Prepare balance sheet after acquisition Comparative balance sheets for Pop and Son Corporations at December 31,...
Prepare balance sheet after acquisition Comparative balance sheets for Pop and Son Corporations at December 31, 2015, are as follows (in thousands): Pop Son Current assets $2,080 $ 960 Land 800 1,600 Buildings—net 4,800 1,600 Equipment—net 3,520 3,840 Total assets $11,200 $8,000 Current liabilities $ 800 $ 960 Capital stock, $10 par 8000 3,200 Additional paid-in capital 800 2,240 Retained earnings 1,600 1,600 Total equities $11,200 $8,000 On January 2, 2016, Pop issues 240,000 shares of its stock with a...
The following information pertains to the following 2 Questions. On January 1, 2021, Gooch Company acquires...
The following information pertains to the following 2 Questions. On January 1, 2021, Gooch Company acquires 80% of the outstanding common stock of House Inc., for a purchase price of $12,400,000. It was determined that the fair value of the noncontrolling interest in the subsidiary is $3,100,000. The book value of the House’s stockholders’ equity on the date of acquisition is $10,000,000 and its fair value of net assets is $11,000,000. The acquisition-date acquisition accounting premium (AAP) is allocated $600,000...
Following is a partially completed balance sheet for Hoeman Inc. at December 31, 2020, together with...
Following is a partially completed balance sheet for Hoeman Inc. at December 31, 2020, together with comparative data for the year ended December 31, 2019. From the statement of cash flows for the year ended December 31, 2020, you determine the following: Net income for the year ended December 31, 2020, was $97,500. Dividends paid during the year ended December 31, 2020, were $65,500. Accounts receivable decreased $11,000 during the year ended December 31, 2020. The cost of new buildings...