Professional Documents
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Chapter 7, Exercise 8
Chapter 7, Exercise 8
Chapter 7, Exercise 8
Total 0
Total Assets
Company
imprlied fair Parent Price NCI value (40%)
Particulars valuealue (60%)
Fair Value of Subsidiary A 250,000 150,000 100,000
Less Book Value of Interest Acquired
Common Stock ($10 par) 100,000
Retained Earnings 20,000
Total Equity 120,000 120,000 120,000
Interest Acquired 60% 40%
Book Value B 120,000 72,000 48,000
Excess of Cost over Book Value A-B 130,000 78,000 52,000
Adjustment of indentifiable accounts Adjustment Life Amortization per year
Equipment 130,000 10 13,000
Total 0
Total 0
Total 0
Total 0
Total 0
Exercise 7-8
428,000
20%
85,600
19,400
Amortization per yearWork sheet
Debit D
Problem 7-1
Price Paid
Less Interest Acquired
Common Stock
Retained Ernings
Total
Interest Acquired
Excess
Equipment Adjustment
Debit to RE
Net income
NCI share
Controlling share of sub. Income
Parent
Internally generated net income
Consolidated Worksheet
Company
Value Analysis First Implied Fair
Purchase Value Parent Price NCI Value
Price Paid
Fair Value of Net Assets
Excluding Goodwill
Goodwill
Gain on Acquisition
Determination and
Distribution of Excess
Schedule
Company
Value Parent Price NCI
Fair Value of Subsidiary
Less Book Value of Interest
Acquired
Common Stock
Paid in Excess
Retained Earnings
Total Equity
Interest Acquired
Book Value
Value
Worksheet
Accounts Adjusted Distribution
Total 0
Parent
Internally generated net income
Controlling share of subsidiary
Purchased Income
Controlling interest
Consolidated Worksheet
Trial Balance Eliminations
James Craft Dr Cr
Inventory, December 31 100,000 50,000
Other Current Assets 126,000 180,000
Investment in Craft Company 413,000
Parent
Internally generated net income
Adjustments
Gain on Acquisition
Controlling interest
Consolidated Worksheet
Trial Balance Eliminations
Away Stallward Dr
Cash 99,500 78,000
Notes Receivable 100,000
Total 0 0
Consolidated net income
NCI share
Controlling share
NCI
Controlling retained earnings
Totals
Total 0
Total 0
Parent
Internally generated net income
Controlling interest
Marsha Corporation and Subsidiary Transam Corporation
Worksheet for Consolidated Financial Statements
For Year Ended December 31, 2016
Determination and
Distribution of Excess
Schedule
Company
Value Parent Price NCI
Fair Value of Subsidiary
Less Book Value of Interest
Acquired
Common Stock
Retained Earnings
January 1 to June 20 Income
Total Equity
Interest Acquired
Book Value
Excess of Cost over Book Value
Worksheet
Accounts Adjusted Distribution Amortization/year
Total 0
Determination and
Distribution of Excess
Schedule
Company
Value Parent Price NCI
Fair Value of Subsidiary
Less Book Value of Interest
Acquired
Common Stock
Retained Earnings
Total Equity
Interest Acquired
Book Value
Excess of Cost over Book Value
Worksheet
Accounts Adjusted Distribution Amortization/year
Total 0
Total
NCI share
Controlling share
Motor
Internally generated net income
Total
NCI share
Controlling share
Parent
Internally generated net income
Controlling share of Boat
Controlling share of Motor
Amortizations
Total
Total 0
Total
Less Preferred Share
NCI share
Controlling share
Parent
Internally generated net income
Total
Determination and
Distribution of Excess
Schedule
Company
Value Parent Price NCI
Fair Value of Subsidiary
Less Book Value of Interest
Acquired
Common Stock
Retained Earnings
Preferred arrearage
Total Equity
Interest Acquired
Book Value
Value
Worksheet
Accounts Adjusted Distribution Amortization/year
Total 0
Total 0
NCI
Totals
Consolidated
ations and Adjustments NCI Balance Sheet
Credit