Parent acquired Sub on January 1 , 2 0 2 3 . You were given the following
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Question:
Parent acquired Sub on January
You were given the following information for the Unadjusted partial IncomeStatements for Parent Inc. and Sub Inc. for December
Parent Inc.
Sub Inc.
Sales Revenue
$
$
Cost of Goods Sold
$
$
Depreciation Expense
$
$
Also for simplicity, assume no other expenses other than listed above. Answer the qAssume Parent owns of Sub. You were also advised that:
Consolidated goodwill as $ At the end of there was a goodwill impairment.
On the date of acquisition, the fair value of Subs inventory was $greater than book value.
Required:
Calculate the adjusted Consolidated Net income before Tax. Hint consider what adjustments need to be made to consolidated cost of goods sold, and consider goodwill impairment.
As well, be sure to differentiate net income of the Parent and Subseparate
Related Book For
Accounting Principles
ISBN: 978-1119048503
7th Canadian Edition Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
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