Required: Prepare the entry on Perch's books to record its investment in Salmon on December 30, year
Question:
Required:
Prepare the entry on Perch's books to record its investment in Salmon on December 30, year 2.
Calculate the acquisition differential, goodwill and non-controlling interest (NCI) at acquisition date using the FVE (entity) theory.
Prepare the acquisition eliminating worksheet entry at acquisition to facilitate the preparation of the consolidated financial statements.
Prepare the consolidated balance sheet at December 31, year 2 using the direct method. Show all calculations for each account balance.
Now assume Perch uses the Identifiable Net Asset (INA) theory (also known as parent company extension (PCE) theory) to prepare its consolidated financial statements. What would be the value of goodwill and NCI at acquisition under the Identifiable net asset theory.
Financial Accounting an introduction to concepts, methods and uses
ISBN: 978-0324789003
13th Edition
Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis