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Fair Value: 412,500 (Higher) Proportionate Share: 1,037,773 X 30% 311,332
Fair Value: 412,500 (Higher) Proportionate Share: 1,037,773 X 30% 311,332
Fair Value: 412,500 (Higher) Proportionate Share: 1,037,773 X 30% 311,332
Debit Credit
Common Stock 488,888
Additional paid in capital 248,888
Retained earnings 187,776
Investment in subsidiary (70%) 647,886
Non-controlling interest (30%) 277,666
To eliminate the account of S
Franchise 39,999
Land 111,111
Inventory 38,889
Investment in subsidiary (70%) 78,555
Non-controlling interest (30%) 33,666
To reflect acquisition date fair values of assets
and liabilities of the acquiree
Goodwill 612,227
Investment in subsidiary 551,059
Non-controlling interest 101,168
To recognize goodwill
Debit Credit
Common Stock 488,888
Additional paid in capital 248,888
Retained earnings 187,776
Franchise 39,999
Land 111,111
Goodwill 612,227
Inventory 38,889
Investment in subsidiary (70%) 1,237,500
Non-controlling interest (30%) 412,500
3. Prepare the consolidated statement of financial position at the date of acquisition
Assets
Cash 2,511,701
Accounts Receivable 1,247,902
Inventory 1,463,130
Goodwill 612,227
Trademark 48,888
Franchise 39,999
Land 3,814,783
Building (net) 2,682,221
Total Assets 12,420,851