Patriot Corporation acquired 7 5 % ownership of Seahawk Corporation on January 1 , 2 0 X
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Question:
Patriot Corporation acquired ownership of Seahawk Corporation on January X for $ The fair value of the noncontrolling interest was $ At that date, Seahawk reported common stock outstanding of $ and retained earnings of $ The differential is assigned to equipment, which had a fair value $ greater than book value and a remaining economic life of years at the date of the business combination. The remaining excess is considered goodwill. Seahawk reported net income of $ and paid dividends of $ in X
What is the amount of goodwill?
Provide the journal entries recorded by Patriot during X on its books if it accounts for its investment in Seahawk using the equity method. INCLUDES INVESTMENT JOURNAL ENTRY, SHARE OF INCOME ENTRY, SHARE OF DIVIDEND ENTRY, AMORTIZATION OF EXCESS ACQUISITION PRICE ENTRY
Give the consolidating entries needed at December X to prepare consolidated financial statements. INCLUDES BASIC CONSOLIDATION ENTRY, AMORTIZED EXCESS VALUE RECLASSIFICATION ENTRY, EXCESS VALUE DIFFERENTIAL RECLASSIFICATION ENTRY
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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