Anchovy acquired 90 percent of Yelton on January 1, 2009. Of Yeltons total acquisition-date fair value, $60,000

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Anchovy acquired 90 percent of Yelton on January 1, 2009. Of Yelton’s total acquisition-date fair value, $60,000 was allocated to undervalued equipment (with a 10-year life) and $80,000 was attributed to franchises (to be written off over a 20-year period).Since the takeover, Yelton has transferred inventory to its parent as follows:


Anchovy acquired 90 percent of Yelton on January 1, 2009.


On January 1, 2010, Anchovy sold Yelton a building for $50,000 that had originally cost $70,000 but had only a $30,000 book value at the date of transfer. The building is estimated to have a five-year remaining life (straight-line depreciation is used with no salvage value).

Selected figures from the December 31, 2011, trial balances of these two companies are as follows:

Anchovy acquired 90 percent of Yelton on January 1, 2009.


Determine consolidated totals for each of these account balances.

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...
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Advanced Accounting

ISBN: 978-0077431808

10th edition

Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik

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