Piecemeal acquisition- with minority interest

On Jan. 3, 2016 Pat Corp. bought 12% of Saw outstanding shares at $30. At the end of 2016 Saw
reported $1150 000 income and paid dividend $5/share. On April, 1 2017 Pat bought 15% shares
of Saw common stock at $ 32. Saw reported 2017 income of $1200 000 and paid dividend $4/share.
Fifty three thousands of Saw's shares were bought by Pat on Jan. 3, 2018 at $22/share.
Saw stocks par $10 were initially sold on Jan. 5, 2015 at fair value $14 collecting fund of $1400000
12 12% 30 1150000 5 100000
9 15% 32 1200000 4 1400000
12 53% 22 2646250 14
80% 20%
Show your Calculation for the followings:
Number of Saw stocks issued in the stock market 1400000/14
Amount of cash Pat paid for Saw stocks on Jan.3, 2016 12%*30*100000
Total Investment in Saw stocks on April 1, 2017 (12%*30*100000)+(15%*32*100000)-(12%*5*100000)
Total Investment in Saw stocks on Dec.31, 2017 ((12%*30*100000)+(15%*32*100000)-(12%*5*100000)+(((12%*12
Amount of cash Pat paid for Saw stocks on Jan.3, 2018 53%*22*100000
Total Investment in Saw stocks on Jan.3, 2018 ((12%*30*100000)+(15%*32*100000)-(12%*5*100000)+(((12%*12
Implied value of Invest in Saw on Jan 3, 2018 ((12%*30*100000)+(15%*32*100000)-(12%*5*100000)+(((12%*12
Using info below- Net FV of Saw net assets (1000000+876800+306000+836000+244000+800000+510000)-(10
Goodwill or Gain on Jan.3, 2018 ((12%*30*100000)+(15%*32*100000)-(12%*5*100000)+(((12%*12
Minority interest on Jan. 3, 2018 ((12%*30*100000)+(15%*32*100000)-(12%*5*100000)+(((12%*12
Complete the following worksheet
Pat BV Saw MV Adjustment CBS
Cash 1,200,000 1,000,000 1,000,000 2,200,000
Account Receivable 400,000 876,800 876,800 1,276,800
Inventory 140,000 306,000 306,000 446,000
Other Current Assets 30,000 836,000 836,000 866,000
Investment in Saw 2,117,000 - 2,117,000 -
Land 1,800,000 244,000 244,000 2,044,000
Buildings (net) 2,156,000 800,000 800,000 2,956,000
Equipment (net) 204,000 510,000 510,000 714,000
Goodwill 419,450 419,450
Total Assets 8,047,000 10,922,250
Account Payable 100,000 1,020,000 1,020,000 1,120,000
Loan Payable 1,500,000 1,326,000 1,326,000 2,826,000
Capital Stock par $10 5,000,000 5,000,000
Paid in Capital 1,000,000 1,000,000
Retained Earnings 447,000 447,000
Minority Interest 529,250 529,250
Total Liab. & Equity 8,047,000 4,992,250 4,992,250 10,922,250
Prepare the journal entries for Dec.31, 2017
Investment in Saw 279,000
Income from Saw 279,000

Cash 108,000
Investment in Saw 108,000
 12000
15000
53000

000)-(12%*5*100000)
0000)-(12%*5*100000)+(((12%*12/12)+(15%*9/12))*1200000)-(12%+15%)*4*100000)

0000)-(12%*5*100000)+(((12%*12/12)+(15%*9/12))*1200000)-((12%+15%)*4*100000)+(53%*22*100000))
0000)-(12%*5*100000)+(((12%*12/12)+(15%*9/12))*1200000)-((12%+15%)*4*100000)+(53%*22*100000))/80%
00+244000+800000+510000)-(1020000+1326000)
0000)-(12%*5*100000)+(((12%*12/12)+(15%*9/12))*1200000)-((12%+15%)*4*100000)+(53%*22*100000))/80%-((1000000+876800+306
0000)-(12%*5*100000)+(((12%*12/12)+(15%*9/12))*1200000)-((12%+15%)*4*100000)+(53%*22*100000))/80%*20%

net asset 2226800 2646250

investment 2117000
goodwill 419450
0%-((1000000+876800+306000+836000+244000+800000+510000)-(1020000+1326000))
Piecemeal acquisition with minority interest
On Jan. 3, 2016 Pat Corp. bought 15000 shares of Saw stocks at $12. At the end of 2016 Saw
reported $1500 000 income and paid dividend $300000. On April, 30 2017 Pat bought 10% shares
of Saw common stock at $ 15. Saw reported 2017 income of $1350 000 and paid dividend $5/share.
Fifty thousands of Saw's shares were bought by Pat on Jan. 3, 2018 at $17/share.
Saw stocks were initially sold on Jan. 5, 2015 at fair value $14 collecting fund of $1400000
12 15% 12 1500000 3 100000
8 10% 15 1350000 5 1400000
12 50% 17 1,736,667 14
75% 25%
Show your Calculation for the followings:
Pat investment in Saw stocks on Jan.3, 2016 1400000/14
Total Investment in Saw stocks on April 30, 2017 (15%*12*100000)+(10%*15*100000)-(15%*3*100000)
Total Investment in Saw stocks on Dec.31, 2017 ((15%*12*100000)+(10%*15*100000)-(15%*3*100000)+(((15%
Total Investment in Saw stocks on Jan.3, 2018 ((15%*12*100000)+(10%*15*100000)-(15%*3*100000)+(((15%
Implied value of Invest in Saw on Jan 3, 2018 ((15%*12*100000)+(10%*15*100000)-(15%*3*100000)+(((15%
Using info below- Net FV of Saw net assets (1000000+876800+306000+836000+244000+800000+510000)-(
Goodwill or Gain on Jan.3, 2018 ((15%*12*100000)+(10%*15*100000)-(15%*3*100000)+(((15%
Minority interest on Jan. 3, 2018 ((15%*12*100000)+(10%*15*100000)-(15%*3*100000)+(((15%
Complete the following worksheet
Pat BV Saw MV Adjustment CBS
Cash 1,200,000 1,000,000 1,000,000 2,200,000
Account Receivable 200,000 876,800 876,800 1,076,800
Inventory 400,000 306,000 306,000 706,000
Other Current Assets 36,750 836,000 836,000 872,750
Investment in Saw 1,302,500 1,302,500 -
Land 1,800,000 244,000 244,000 2,044,000
Buildings (net) 2,156,000 800,000 800,000 2,956,000
Equipment (net) 204,000 510,000 510,000 714,000
Goodwill
Total Assets 7,299,250 10,569,550
Account Payable 100,000 1,020,000 1,020,000 1,120,000
Loan Payable 870,000 1,326,000 1,326,000 2,196,000
Capital Stock par $10 5,000,000 5,000,000
Paid in Capital 1,000,000 1,000,000
Retained Earnings 329,250 490,133 819,383
Minority interest 434,167 434,167
Total Liab. & Equity 7,299,250 4,572,800 4,572,800 10,569,550
Prepare all journal entries for 2017
Investment in Saw 150,000
cash 150,000
Dividend in income 45,000
Investment in Saw 45,000
Investment in Saw 292,500
Income from Saw 292,500
Cash 125,000
Investment in Saw 125,000
0)-(15%*3*100000)
0)-(15%*3*100000)+(((15%*12/12)+(10%*8/12))*1350000)-(15%+10%)*5*100000)
0)-(15%*3*100000)+(((15%*12/12)+(10%*8/12))*1350000)-((15%+10%)*5*100000)+(50%*17*100000))
0)-(15%*3*100000)+(((15%*12/12)+(10%*8/12))*1350000)-((15%+10%)*5*100000)+(50%*17*100000))/75%
+244000+800000+510000)-(1020000+1326000)
0)-(15%*3*100000)+(((15%*12/12)+(10%*8/12))*1350000)-((15%+10%)*5*100000)+(50%*17*100000))/75%-((1000000+876800+306000
0)-(15%*3*100000)+(((15%*12/12)+(10%*8/12))*1350000)-((15%+10%)*5*100000)+(50%*17*100000))/75%*25%

net asset 2226800

invest 1302500
gain -490,133
000000+876800+306000+836000+244000+800000+510000)-(1020000+1326000))
Piecemeal acquisition with minority interest
On Jan. 3, 2016 Pat Corp. bought 16000 shares of Saw stocks at $15. At the end of 2016 Saw
reported $1500 000 income and paid dividend $3/stock. On April, 1 2017 Pat bought 14% shares
of Saw common stock at $ 17. Saw reported 2017 income of $1350 000 and paid dividend $4/share.
forty-five thousands of Saw's shares were bought by Pat on Jan. 3, 2018 at $20/share.
Saw stocks were initially sold on Jan. 5, 2015 at fair value $14 collecting fund of $1400000
12 16% 15 1,500,000 3 100,000
9 14% 17 1,350,000 4 1,400,000
12 45% 20 14
75% 25%
Show your Calculation for the followings:
Pat controllin interest in Saw stocks on Jan.3, 2016 16%
Total Investment in Saw stocks on April 1, 2017 (16%*15*100000)+(14%*17*100000)-(16%*3*100000)
Total Investment in Saw stocks on Dec.31, 2017 ((16%*15*100000)+(14%*17*100000)-(16%*3*100000)+(((16%*1
Pat controling interest in Saw stocks on Jan.3, 2018 16%+14%+45%
Implied value of Invest in Saw on Jan 3, 2018 ((16%*15*100000)+(14%*17*100000)-(16%*3*100000)+(((16%*1
Using info below- Net FV of Saw net assets (1000000+876800+306000+836000+244000+800000+510000)-(10
Goodwill or Gain on Jan.3, 2018 ((16%*15*100000)+(14%*17*100000)-(16%*3*100000)+(((16%*1
Minority interest on Jan. 3, 2018 ((16%*15*100000)+(14%*17*100000)-(16%*3*100000)+(((16%*1
Complete the following worksheet
Pat BV Saw MV Adjustment CBS
Cash 1,200,000 1,000,000 1,000,000 2,200,000
Account Receivable 400,000 876,800 876,800 1,276,800
Inventory 200,000 306,000 306,000 506,000
Other Current Assets 50,000 836,000 836,000 886,000
Investment in Saw 1,567,750 - ### -
Land 1,800,000 244,000 244,000 2,044,000
Buildings (net) 2,156,000 800,000 800,000 2,956,000
Equipment (net) 204,000 510,000 510,000 714,000
Goodwill 22,583 22,583
Total Assets 7,577,750 10,605,383
Account Payable 100,000 1,020,000 1,020,000 1,120,000
Loan Payable 1,077,750 1,485,050 1,485,050 2,562,800
Capital Stock par $10 5,000,000 5,000,000
Paid in Capital 1,000,000 1,000,000
Retained Earnings 400,000 400,000
Minority interst 522,583 522,583
Total Liab. & Equity 7,577,750 4,595,383 4,595,383 10,605,383
Prepare journal entries on 2016 and April 1, 2017
Investment in Saw 240,000
Cash 240,000
Cash 48,000
Dividend Income 48,000
Investment in Saw 238,000
Cash 238,000
Dividend in income 48,000
Investment in Saw 48,000
00)-(16%*3*100000)
000)-(16%*3*100000)+(((16%*12/12)+(14%*9/12))*1350000)-(16%+14%)*4*100000)

000)-(16%*3*100000)+(((16%*12/12)+(14%*9/12))*1350000)-((16%+14%)*4*100000)+(45%*20*100000))/75%
0+244000+800000+510000)-(1020000+1485050)
000)-(16%*3*100000)+(((16%*12/12)+(14%*9/12))*1350000)-((16%+14%)*4*100000)+(45%*20*100000))/75%-((1000000+876800+3060
000)-(16%*3*100000)+(((16%*12/12)+(14%*9/12))*1350000)-((16%+14%)*4*100000)+(45%*20*100000))/75%*25%

net asset 2,067,750

invest 1,567,750
goodwill 22,583

$2,090,333
5%-((1000000+876800+306000+836000+244000+800000+510000)-(1020000+1485050))
Piecemeal acquisition with minority interest
On Jan. 3, 2016 Pat Corp. bought 12000 shares of Saw stocks at $15. At the end of 2016 Saw
reported $1500 000 income and paid dividend $4/stock. On May 31, 2017 Pat bought 14% shares
of Saw common stock at $ 20. Saw reported 2017 income of $1350 000 and paid dividend $5/share.
Fifty four thousands of Saw's shares were bought by Pat on Jan. 3, 2018 at $22/share.
Saw stocks were initially sold on Jan. 5, 2015 at fair value $14 collecting fund of $1400000
12 12% 15 1500000 4 100000
7 14% 20 1350000 5 1400000
12 54% 22 14
80%
Prepare the journal entries for the followings:
Jan.5, 2015 Cash $1,400,000
Common stock
Paid in capital
Jan.3, 2016 Investment in saw $180,000
Cash $180,000
31-May-17 Investment in saw $280,000
Cash $280,000
Dividend income $48,000
Investment in saw $48,000
Dec.31, 2017 Investment in saw $272,250
Income from saw $272,250
Cash $130,000
Investment in saw $130,000
Jan. 3, 2018 Investment in saw $1,188,000
Cash $1,188,000
Complete the following worksheet
Pat BV Saw MV Adjusment CBS
Cash $1,200,000 $1,000,000 $1,000,000 $2,200,000
Account Receivable $400,000 $875,000 $875,000 $1,275,000
Inventory $200,000 $300,000 $300,000 $500,000
Other Current Assets $50,000 $835,000 $835,000 $885,000
Investment in Saw $1,742,250 $1,742,250 $0
Land $1,800,000 $200,000 $200,000 $2,000,000
Buildings (net) $2,156,000 $800,000 $800,000 $2,956,000
Equipment (net) $204,000 $500,000 $500,000 $704,000
Goodwill $167,813 $167,813
Total Assets $7,752,250 $10,687,813
Account Payable $100,000 $1,000,000 $1,000,000 $1,100,000
Loan Payable $1,189,750 $1,500,000 $1,500,000 $2,689,750
Capital Stock par $10 $5,000,000 $5,000,000
Paid in Capital $1,000,000 $1,000,000
Retained Earnings $462,500 $462,500
Minority Interest $435,563 $435,563
Total Liab.& Equity $7,752,250 $4,677,813 $4,677,813 $10,687,813