Whitney Company acquires an 80% interest in Masters Company common stock on January 1, 2011. Appraisals of Masters’ assets and liabilities are performed, and Whitney ends up paying an amount that is greater than the fair value of Masters’ net assets and reflects a premium to achieve control. The fair value of the NCI is $235,000. The following partial determination and distribution of excess schedule is created on January 1, 2011, to assist in putting together the consolidated financial statements:
Prepare amortization schedules for the years 2011, 2012, 2013, and 2014.
Answer to relevant QuestionsOn January 1, 2011, Portico Company acquires 8,000 shares of Sauder Company by issuing 10,000 of its common stock shares with a par value of $10 per share and a fair value of $70 per share. The price paid reflects a control ...Sandin Company prepares the following balance sheet on January 1, 2011: On this date, Prescott Company purchases 8,000 shares of Sandin Company’s outstanding stock for a total price of $270,000. Also on this date, the ...Refer to the preceding information for Paulcraft’s acquisition of Switzer’s common stock. Assume that Paulcraft pays $420,000 for 70% of Switzer common stock. Paulcraft uses the cost method to account for its investment ...Harvard Company purchases a 90% interest in Bart Company for $720,000 on January 1, 2011. The investment is accounted for under the cost method. At the time of the purchase, a building owned by Bart is understated by ...Company S is a 70%-owned subsidiary of Company P. Company S is building a ship to be used by Company P. The ship was 40% completed in 2011 and 100% completed in 2012. The actual and budgeted profit on the ship was $100,000. ...
Post your question