CONSOLIDATION WORKSHEET PROBLEM 1. in this project Goodwill is called intangibles and amortized over a period of
Question:
CONSOLIDATION WORKSHEET PROBLEM 1. in this project Goodwill is called "intangibles" and amortized over a period of time ( if this amount is 240,000 over 10 years, at 12/31/x3 worksheet intangible will be (240,000 -24,000) 216,000, x4 intangible will be 192,000 and so forth) 2. Project : focus on the worksheet for 2004 - this has intercompany sales, use 20x3 as an example. (once you do x4, you can make progress on x5 & x6 - you can leave the bond for last) 3. To start the project - you should do some preliminary calculations: figure out 100% value of the subsidiary, allocation of FV-BV schedule this out for the 20x3-6, then calculate the controlling % of these items and non-controlling % 4. Bonds affect 20x5 and 20x6 - calculations need to be done 5. Basic worksheet adjustments: Steps needed to be done on the worksheets: 1. remove income from Sub 2. remove the sub capital and r/e 3. remove dividend payable/recieviable 4. intercompany sales - i.e. Gross Profit in ending inventory this is for the worksheet bonds are a special intercompany item 5. amortization of differences FV-BV
Expert Answer:
1 The intangible asset should be recorded at its fair value of 240000 The intangible asset should be amortized over its useful life of 10 years On the ... View the full answer
