Question

Panther Company acquires an 80% interest in Sargo Company for $272,000 on January 1, 2011, when Sargo Company has the following balance sheet:
The excess of the price paid over book value is attributable to the fixed assets, which have a fair value of $260,000, and to goodwill. The fixed assets have a 10-year remaining life. Panther uses the sophisticated equity method to record the investment in Sargo Company.
The following trial balances of the two companies are prepared on December 31, 2011:
1. If you did not solve Exercise 3, prepare a determination and distribution of excess schedule for the investment (a value analysis is not needed).
2. Prepare all the eliminations and adjustments that would be made on the 2011 consolidated worksheet.
3. If you did not solve Exercise 3, prepare the 2011 consolidated income statement and its related income distribution schedule.
4. If you did not solve Exercise 3, prepare the 2011 statement of retained earnings.
5. If you did not solve Exercise 3, prepare the 2011 consolidated balance sheet.


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  • CreatedApril 13, 2015
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