On January 1 Year 1 Green Inc purchased 100 of
On January 1, Year 1, Green Inc. purchased 100% of the common shares of Mansford Corp. for $335,000. Green’s balance sheet data on this date just prior to this acquisition were as follows:
The balance sheet and other related data for Mansford are as follows:
Additional Information
• As at January 1, Year 1, the estimated useful lives of the building and equipment were 15 years and 4 years, respectively, and the term to maturity was
10 years for the non-current liabilities.
• There has been no goodwill impairment since the date of acquisition.
• For both companies, the income tax rate is 40%. Deferred income taxes are recognized on the consolidated financial statement pertaining to the temporary differences arising from the acquisition differential.
Required:
(a) Prepare a consolidated balance sheet at January 1, Year 1.
(b) Prepare a schedule of amortization/impairment of the acquisition differential for the period from January 1, Year 1, to December 31, Year 4.
Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
    Tutors
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
OR
Relevant Tutors available to help